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Philippines: Petron swings to P6.1 billion profit
MANILA, Philippines — Petron Corp. bounces back with a P6.14 billion in net earnings last year, a reversal of the P11.4 billion net loss in 2020, on higher volumes and recovery in international oil prices.
Consolidated revenues jumped by 53 percent from P286 billion to P438.06 billion, driven by the increase in international prices and higher local demand.
It said Dubai crude prices breached the $80 per barrel level in the fourth quarter due to recovering oil demand and tighter supply.
This drove the Dubai crude to average near $70 per barrel last year, 64 percent higher than 2020’s $42 per barrel average—its highest annual average in the past three years.
Petron cited the recovery in demand along with the Organization of Petroleum Exporting Countries’ (OPEC) managed approach in increasing crude supply back in the market, which paved the way for refining margins to improve. It resume refinery operations in the second half of last year.
In terms of sales, Petron’s volume sold rose by five percent to 82.24 million barrels last year amid the easing of restrictions and re-start of economic activities that improved overall demand.
Locally, retail volumes went up by 6.4 percent amid the implementation of granular lockdowns.
Broken down, industrial sales grew by two percent as travel restrictions eased and more industries reopened, while lubricant sales recorded the highest growth at 11 percent owing to the strong performance and presence of its locally produced engine oils and other lubricant products in the market.
“We have recovered significant volumes in key market segments, and more importantly, we have returned profitability to our business. This allowed us to follow through on our expansion programs, bring our products and services to more consumers, and contribute to our country’s progress. We hope to carry on with this momentum and thrive further in 2022,” Petron president and CEO Ramon Ang said.
Last year, Petron continued to invest in refinery enhancements, service station expansion, and supply chain management.
It is close to completing the new 184-megawatt (MW) power plant in its refinery complex in Bataan. The new facility will eliminate use of fuel oil at the refinery and allow conversion of these feedstock into more fuel for sale.
It also added more stations last year—but did not give the number of new stations opened—which added to its already expansive reach, alongside the construction and upgrades of terminal facilities all over the country to accommodate higher product demand.
Source: https://www.philstar.com/business/2022/03/09/2165896/petron-swings-p61-billion-profit