Petron profit down 67% to P2.3 billion

MANILA, Philippines — Petron Corp. registered a 67 percent drop in net profit to P2.3 billion last year, pulled down by its Philippine operations.

Philippine operations incurred a net loss of P1.4 billion compared to the P2.8 billion net income the previous year.

Petron experienced unplanned total plant shutdown at its Petron Bataan Refinery (PBR) in April last year which led to low production as well as start-up and stabilization activities in August to September last year. 

The financial results were also affected by weak refining margins amid global market volatility due to political tensions in the Middle East and uncertainties in the global economy.

The average Dubai crude fell from $69 per barrel in 2018 to $63 per barrel last year, while regional prices of finished petroleum products and petrochemicals declined amid oversupply.

On the other hand, average crude premiums rose by almost threefold from the previous year.

Petron reported consolidated revenues of P514.4 billion, down eight percent from 2018.

Sales volume was slightly lower at 107 million barrels from the previous year’s 108.5 million barrels due to the five percent decline in Philippine volumes as its PBR underwent emergency shutdown as a result of the earthquake in April.

Meanwhile, Petron Malaysia’s domestic volumes increased by three percent which helped offset the decline in Philippine volumes.

“Despite the challenging business environment, we still pursued our strategic goals to sustain our leadership and deliver long-term growth for our company. Moving forward, we intend to keep our focus on further expanding our reach, strengthening our services and product offerings, and increasing our operational efficiency to better secure our position for the future,” said Petron president and chief executive officer Ramon Ang.

Petron opened 124 new stations last year, maintaining its record of having the most number of stations in the country at over 2,400.

 As a major highlight for the year, Petron began commercial operations of its state-of-the-art new lube oil blending plant in Tondo, Manila.

The plant, which has a filling capacity twice of its former plant in Pandacan, allows the company to produce its top-selling lubes and greases to better serve its market here and abroad.

 Petron also commenced operations of its import terminal located at SL Phividec in Tagoloan, Misamis Oriental, improving efficiency in product handling and distribution in the southern part of the country.

 Before the end of the year, all of Petron’s major facilities, including its refinery and terminals, complied with the government’s fuel marking program, as an affirmation of the company’s support to curb smuggling.