Petron (PCOR) investor relations material

Executive summary

• Achieved strong profitability and operational resilience for the nine months ending September 2025, with consolidated net income rising 37% year-over-year to PHP 9.67 billion, despite a 7–10% decline in consolidated revenues due to lower commodity prices and deconsolidation of certain power assets.

• Margin expansion and cost discipline drove a 13% increase in operating income to PHP 137.4 billion, with net income rising to PHP 78.6 billion, supported by fair value and forex gains.

• Philippine retail sales grew 11%, and commercial sales increased 7% in diesel, jet fuel, and LPG, offsetting lower export and trading volumes.

• Sustainability and ESG initiatives were integrated into capital expenditure reviews, with multiple recognitions for environmental and social impact.

• Focus remains on nation-building, food and energy security, and sustainable development through infrastructure and energy expansion.

Financial highlights

• Consolidated operating income up 13% to PHP 137.4 billion; margin improved from 10.3% to 12.6%.

• Net income reached PHP 78.6 billion, with core net income (excluding one-offs and forex) up 54% to PHP 60.3 billion.

• Gross profit improved by 15% to PHP 39.63 billion; consolidated EBITDA rose 16% to PHP 194.3 billion.

• Total assets at PHP 2.7 trillion, liabilities at PHP 1.9 trillion, stockholders' equity at PHP 733 billion, and cash balance at PHP 344 billion.

• Parent net debt as of 9M25 was PHP 701.4 billion; long-term debt (including current portion) rose 24% to PHP 146.18 billion.

Outlook and guidance

• Growth in domestic sales is expected, supported by increased government consumption and a rebound in exports, but caution remains due to weak capital formation and subdued industrial activity.

• Crude prices expected to remain stable around $60–$65 per barrel into early 2026; further monetary easing and stable inflation anticipated.

• Infrastructure projects, including the new Manila International Airport and MRT 7, are progressing, with significant upgrades and expansions underway.

• Renewable energy portfolio to expand with 4,200 MW hydropower and 2,225 MW solar projects awarded in 2025, with major completions expected over the next five years.

• Power segment expects full-year contributions from battery projects in 2026, targeting EBITDA of around PHP 70 billion.