PETRON Corp. suffered a net loss of P4.9 billion in the first quarter of 2020 compared to the P1.3 billion net income in the same period last year.
This is attributed to significant inventory losses as fuel prices collapsed due to demand contraction in the local and international markets.
Petron said the benchmark Dubai crude slumped 66 percent to $23 per barrel by end-March from $67 per barrel at the end of 2019.
Petron’s consolidated revenues declined 16 percent to P104.6 billion from P124.6 billion.
Combined sales volume in the Philippines and Malaysia dropped to 24.7 million barrels from 26.3 million barrels the previous year due to the sudden and significant drop in fuel demand.
Both countries imposed strict lockdowns towards the end of the quarter to contain the spread of the virus which limited movement and economic activity.
“The entire industry is going through a rough phase because of COVID-19’s impact on oil demand and prices. As expected, domestic consumption has gone down particularly in retail and aviation which is understandable because of travel bans and restrictions,” said Ramon Ang, Petron president and chief executive officer.
Ang said in a statement that since the enhanced community quarantine was implemented, some Petron stations have temporarily closed or shortened their operating hours due to the lesser number of vehicles on the road. This also prompted the company to impose cost-saving and cash conservation measures.
“Business is challenging. We have to be more prudent in managing our resources while ensuring that the needs of our customers are still met. Demand recovery will depend upon the lifting of quarantine measures and ultimately, finding a vaccine to fully restore mobility. While we are hopeful for a swift recovery, we know that these are things we cannot rush. The health and safety of the people is still the most important,” Ang said.
Petron’s Bataan refinery has ben closed since early this month for maintenance activities.
The company assured it has enough inventory to supply domestic market requirements which will be replenished through importation of finished products.
Ang also assured Petron will continue to aid frontlines as well as its scholars, communities and other stakeholders amid the pandemic.
Petron is still the leading oil retailer with a market share of 24.69 percent with over 2,400 stations nationwide.
