Petron Corporation said that its income in 2019 had dropped by 67% to P2.3 billion. This is due to the company’s refining business incurred losses and low production. According to the company, despite the challenging business environment, it still tried to pursue its strategic goals in order to sustain its leadership and be able to deliver long-term growth for the company. Although the losses were significant, the firm assured that it will keep its focus on expanding its network, increasing its operational efficiency, and strengthening its services to secure a better position in the future.
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Apart from the net income, Petron also disclosed its consolidated revenues. The company had consolidated revenues of P514.4 billion last year which is 8% lower than in 2018. The sales volume recorded was lower as well at 107 million barrels in 2019 compared to 2018’s 108.5 million barrels. This was triggered by the 5% decline in Philippine volumes which was an outcome of the emergency shutdown of Petron Bataan Refinery in April 2019 due to the earthquake. In Malaysia, the sales volume of the company jumped by 3% and this helped offset the decrease in revenues in the Philippines.
The company reported too that its operations in the Philippines swung to a net loss of P1.4 billion in 2019. Compared to its income of P2.8 billion in 2018, this was a complete opposite. The loss was due to the unplanned total plant shutdown in Bataan caused by the earthquake in April. This resulted to local refining businesses incurring losses on the stabilization, start-up, and low production from August to September. Because of this, the financial results of the company were greatly affected. Adding to the pressure was the weak refining margins. The market kept on its volatile state because of political issues in the Middle East and global economic uncertainties.
Despite the losses, Petron did a great job in 2019 and among its highlights is the beginning of commercial operations of the new lube oil blending plant located in Tondo, Manila. This facility creates lubes and greases for local and foreign markets. It has a filling capacity which is twice as much as the previous plant owned by Petron in Pandacan, Manila. Petron was also able to start its operations in its import terminal in Tagoloan, Misamis Oriental, which aims to enhance its product distribution and handling in the southern region of the country.