Petron (PCOR) investor relations material

Executive summary

• Consolidated revenue rose 27% year-over-year to P246.02 billion, driven by higher sales volume and elevated fuel prices amid global supply disruptions and peso depreciation.

• Net income dropped 56% to P1.78 billion due to lower refining margins, higher product costs, and scheduled refinery maintenance.

• Operating income declined 36% to P6.06 billion, reflecting margin compression and increased operating expenses.

Financial highlights

• Gross profit decreased 22% to P10.52 billion, while cost of goods sold increased 30% to P235.50 billion.

• Interest expense and other financing charges fell 24% to P3.67 billion, while interest income rose 11% to P312 million.

• Earnings per share (basic/diluted) was (P0.02), down from P0.39 in the prior year.

• Total assets increased 30% to P589.08 billion, mainly due to higher inventories and receivables.

• Total liabilities rose 41% to P467.16 billion, with a significant increase in liabilities for crude oil and petroleum products.

Outlook and guidance

• Management expects continued volatility in oil prices and foreign exchange due to geopolitical tensions and supply chain disruptions.

• The company is focused on supply chain reliability, cost management, and prudent risk management to mitigate adverse effects.

• Demand may be affected by prolonged high prices and market conditions, with refining margins remaining under pressure.