Petron Corp. is optimistic about demand recovery this year and plans to resume refining by the second half of the year.
The oil firm suffered a net loss of P11.4 billion in 2020 from the previous year’s net income of P2.3 billion.
Consolidated sales volume dropped 27 percent to 78.6 million barrels from 107 million barrels.
Consolidated revenues declined 44 percent to P286 billion from P514.4 billion, further reflecting the impact of the pandemic in the fuel industry.
“…our performance in the second half of 2020 proves that we are moving in the right direction. 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,” said Ramon Ang, Petron president and chief executive officer.
Ang said Petron can now benefit from the registration of its refinery as a registered enterprise by the Authority of the Freeport Area of Bataan which will require payment of value added tax only upon withdrawal of the products.
“We continue to implement various cost saving efforts 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.
The company’s 180,000 barrels per day facility is the country’s only remaining refinery that produces petroleum products and petrochemicals capable of supplying 40 percent of domestic demand.
Petron put the Bataan refinery on scheduled shutdown in May last year to give way to maintenance activities coinciding with low fuel demand and poor margins at the time, when the country was on strict lockdown.
Ang had said oil refining is a crucial industry as it ensures stable supply.