Petron losses hit P12.6B

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    Petron Corp. posted a cumulative net loss of P12.6 billion in the first nine months of the year from a net income of P3.6 billion in 2019 on depressed global crude prices.

    Consolidated revenues declined by 43 percent to P216.4 billion from P381.7 billion.

    The benchmark Dubai crude averaged at $41.5 per barrel during the last three months while refining margins are currently at around $2.80 per barrel

    Petron said consolidated sales volume from the Philippines and Malaysia for the first nine months contracted by 24 percent to 59.5 million barrels from last year’s 78.7 million barrels.

    Quarter on quarter, sales volume have recovered as quarantine restrictions eased and economic activities picked up. Its consolidated retail volume rose 48.6 percent.

    Philippine volume jumped 33 percent with most of service stations operating under normal hours since August.

    Petron recorded a consolidated net income of P1.63 billion during the quarter, primarily driven by retailing margins as the company’s refining segment continued to incur losses.

    “While the oil industry continues to face major challenges, we are beginning to see signs of recovery thanks to our government’s decision to gradually and safely restart the economy.

    Aside from retail, we can also expect the reopening of local tourism to influence higher demand for aviation fuel which really took a hit because of the pandemic. We’ve also seen some improvements in Malaysia with a notable upturn in our domestic volume to almost pre-pandemic levels,” said Ramon Ang, Petron president and chief executive officer.

    Meanwhile, oil companies rolled back for the consecutive week prices of petroleum products on continuing rise of new coronavirus disease 2019 cases in Europe and the United States as well as the heightened concerns over the outlook for fuel consumption.

    According to the Department of Energy, the latest average Manila price per liter of gasoline (RON95) is at P48.97, diesel at P33.71 and kerosene at P36.91.

    Petron, Shell and Seaoil adjusted per liter prices downward by P0.80 of gasoline, P0.85 of diesel and P0.70 of kerosene.

    As of October 27, year-to-date adjustments on fuel prices summed up to a net decrease of P4.67 per liter for gasoline, P10.26 per liter for diesel and P13.59 per liter for kerosene.