Petron H1 net profits dip 15% on crude spike

01 August 2008 09:19  [Source: ICIS news]

SINGAPORE (ICIS news)--Philippines’ largest oil refiner Petron has posted a nearly 15% year-on-year fall in its first-half net profits to Philippine peso (Ps) 2.3bn ($52m) due to the spike in crude values coupled with higher financing costs, it said.

"Since the start of the year, Dubai crude has increased by 49% from an average of $85.58/bbl late last year to $127.87/bbl in June," the firm added in a statement late on Thursday.

Total sales however, surged 33% to Ps131.3bn from Ps98.8bn year on year.

"Despite this drop in our net income caused by exceptional external factors, we remain optimistic about meeting our financial targets," said Nicasio I Alcantara, chairman and CEO.

"With our diversification strategy, particularly our efforts to increase our production of petrochemicals, we are in a stronger position to cope with oil price volatility," he added referring to the company’s new benzene, toluene and mixed xylenes (BTX) facility in Bataan that is expected to be completed in the first quarter of 2009.

($ 1 = Ps 44.33)

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