Petron Corp. reported its net income in the first nine months of the year dropped 70 percent to P3.6 billion from the previous P12.1 billion, due to prolonged depressed refining margins in the region and its emergency refinery shutdown last April.
It said Petron Malaysia’s contributions and the parent company’s efforts to manage costs and viability amid a volatile market condition contributed for the profit.
The listed oil firm’s consolidated revenues declined 9 percent to P381.7 billion from P419.9 billion, as sales volume went down mainly due to the 7 percent lower Philippine volumes caused by the refinery shutdown, although this was cushioned by the 2 percent volume increase in Malaysia.
Petron said low global oil prices due to the ongoing trade wars had also been a factor in its financial performance.
Despite the decrease in Philippine volumes, the company noted its stations within freeport zones performed better than last year. Enterprises like service stations within freeport zones like Clark and Subic do not pay local and national taxes, including excise taxes.
Inside the Clark Freeport Zone, Petron’s retail volume jumped 54 percent from the same period a year ago.
“This level playing field is what we hope will prevail in the entire country once the fuel marking program is in place. We fully support and look forward to its implementation but at the same time, we reiterate that this mechanism will only work if all players go by the same rules,” Ramon Ang, Petron president and chief executive officer, said in a statement.
Ang said oil smuggling has worsened in recent years which robbed the government of taxes.
During the said period, Petron opened over 100 new stations in the Philippines and 38 new stations in Malaysia. Locally, it has over 2,400 stations, the largest network in the country.
Department of Energy data showed as of first half of 2018, Petron still dominates the local market with a share of 24.69 percent.