PetroEnergy Resources Corp. reported a 30% decline in net income for the fiscal year 2024, driven by rising operational expenses and higher input costs.
The company's net income fell to PHP 1.2 billion from PHP 1.7 billion in the previous year, missing analyst expectations. Revenues, however, remained relatively flat at PHP 8.5 billion.
Management attributed the profit drop to increased costs of raw materials, maintenance, and logistics, which outpaced revenue growth. The company also faced higher financing charges due to interest rate hikes.
"Despite the challenging cost environment, we remain focused on optimizing operations and pursuing cost-saving initiatives," said a PetroEnergy spokesperson.
Analysts noted that the energy sector is grappling with global supply chain disruptions and volatile fuel prices, which have squeezed margins across the industry.
PetroEnergy operates oil and gas assets in the Philippines and abroad. The company expects to see margin improvement in the second half of 2025 as some cost pressures ease.