PETRON CORP. posted a 27% decline in first-half net income to P3.8 billion as higher crude oil prices driven by the conflict in the Middle East raised production and import costs, squeezing margins despite a sharp increase in revenues. In a statement on Tuesday, the oil refiner and fuel retailer said revenues rose 57% to P605.9 billion, driven by higher fuel prices and improved sales volume. However, higher production and importation costs, together with increased operating expenses, offset the gains from stronger sales. Despite weaker earnings, consolidated sales volume increased 6% to 67.9 million barrels, driven by higher trading volumes at Petron’s Singapore subsidiary. The increase more than offset a 6% decline in combined sales volume in the Philippines and Malaysia, which totaled 52.9 million barrels.