Petron posts P11.4-B loss in 2020

Listed Petron Corp. incurred a net loss of P11.4 billion last year after the coronavirus pandemic dampened demand and sales.

In a disclosure on Wednesday, the Ang-led oil company said the amount reversed the P2.3-billion net income it earned in 2019.

Consolidated revenues plummeted by 44 percent to P286 billion from P514.4 billion, “reflecting the impact of the pandemic on Petron’s financial performance,” it added.

Consolidated sales volume hit 78.6 million barrels, down 27 percent from 107 million barrels.

In the fourth quarter alone, consolidated net income reached P1.2 billion on increased volumes and inventory holding gains as prices rallied toward yearend.

“However, refining margins remained soft, which challenged the economic viability of the company’s Philippine operations,” the firm said.

Consolidated revenues reached P69.6 billion, a 46-percent increase “from the P47.7 billion reported in Q2, Petron’s hardest-hit quarter in 2020,” it added.

Consolidated sales volume grew by 6.6 percent to 19.08 million barrels in October to
December from 17.9 million barrels as the government extended general community quarantines in key cities and Malaysia issued another order restricting mobility.

“We have been working hard to minimize the impact of the pandemic on our business, and our performance in the second half of 2020 proves that we are moving in the right direction,” Petron President and Chief Executive Officer Ramon Ang said in the disclosure.

“We look forward to sustaining our recovery as we anticipate higher demand and a more stable industry situation with an end to this crisis finally in sight,” he added.

Moving forward, Petron said it would focus on further improving its competitiveness.

In December, the Authority of the Freeport Area of Bataan (AFAB) accredited the firm as a registered enterprise, allowing it to avail itself of fiscal incentives under the Special Economic Zone Act of 1995 or the Omnibus Investment Code of 1987.

One benefit it cited is better timing on paying value-added tax upon the withdrawal of its products from its refinery in the province.

“We continue to implement various cost-saving [measures], but tax efficiency is another critical area that should improve. Our AFAB registration will help make our refining business more competitive and financially viable as soon as demand recovers,” Ang said.

Petron looks forward to demand recovering this year and plans to resume its refining operations by the second half.

Petron shares fell by 3 centavos or 0.87 percent to end at P3.41 each on Wednesday.