Q3 Income Fell
San Miguel Corporation (SMC) reported a drop in its earnings by 5% during the nine-month period of 2019 as Petron Corporation had been badly affected by the shrinking refining margins. The conglomerate presented on its website that the income fell to P39.7 billion from January to September. The third-quarter figures have not been disclosed yet. Instead, the company chose to present the accumulated earnings as of this quarter. For those who need this information, here are the other parts of the news.
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SMC Income
According to the firm, the year-to-date net sales were at P758.63 billion flat. This is lower compared to the P761.17 billion net sales reported last year during the same period. The operating income for the nine-month period also slipped by 9% to P88.5 billion. If we take a look at the business segment section, most of the earnings, which were at P381.66 billion, of SMC were contributed by Petron. Despite the 9% decrease in earnings from the same period last year, Petron continues to be a big role player in SMC’s business. And since Petron has been a major player, it is not surprising that SMC reported a slip in its earnings while Petron is trying to recover from its shrinking refining margins.
About Petron
As for Petron, it reported a 70% net income drop to P3.6 billion. This is due to owing to prolonged depressed refining margins in the region and its refinery shutdown. The decline in earnings was partly tempered by the 2% increase in sales volume in Malaysia. SMC said that it will continue to push for a level playing field in the industry as it supports the fuel-making program of the government. The firm will continue to watch out for the implantation of all the industry players.
SMC During Q2
During the first half of 2019, the firm reported a decline billion. This is much lower compared to the P27.59 billion net income it posted last year during the same period. This followed an increase in net sales, which is 2% or equivalent to P509.5 billion. The drop in net income of SMC can be attributed to the flat revenue and sluggish performance of Petron Corporation. The firm noted that Petron weighed by weak refining margins and prevailing movements in the prices of crude oil in the world. The consolidated operating income went down by 14% or P57.6 billion because of this. Petron’s net income dropped by 72% or P2.62 billion and net sales by 7% to P254.81 billion because of the closure of its Bataan refinery that is set for maintenance and major repairs after the earthquake that hit the province last April 2019.
