Petron 2018 net income down 50% to ₧7.1B

PETRON Corp.’s net income in 2018 plunged 50 percent to P7.1 billion, mainly due to the decline in global crude prices last year.

The country’s largest oil refiner said on Tuesday it incurred an inventory loss of P10 billion for

the last two months of the year, following a sustained decline in world oil prices.

“It was a challenging year, yet we captured the majority of the market and remained the largest and fastest-growing oil company in the country. While our longterm fundamentals remain attractive, we will continue to be prepared and responsive to market conditions,” Petron President Ramon S. Ang said.

Operating income for the year reached P18.9 billion, 32 percent lower than the P27.6 billion last year. Excluding the one-time item, profits would have ended 21 percent higher at P17 billion.

Meanwhile, consolidated sales stood at P557.4 billion, up 28 percent from the P434.6 billion recorded in 2017. Petron managed combined sales volume of 108.5 million barrels for the year, slightly higher than the 107.8 million barrels sold in 2017.

Petron’s strong local sales of gasoline, Jet-A1 and LPG, along with improved operating efficiency, contributed to the increase. It also retained its leadership in the retail, industrial and LPG trades, cornering majority of the market.

In 2018 Petron’s 180,000 barrel-per-day oil refinery in Bataan hit an annual utilization rate of 95 percent, its highest on record, as it further increased its production of high-value fuels and petrochemicals.

During the year, petrochemical and polypropylene sales grew by 3 percent and 28 percent, respectively, versus 2017. This drove the increase in export volume, which surpassed last year by over 7 percent.

Petron Malaysia’s domestic sales continued to deliver good results in 2018. Petron currently has over 640 stations in the country, reflecting the strong sales of its high-performance fuels.

Petron provides nearly 40 percent of the country’s fuel requirements through its Bataan refinery, 30 terminals, and over 2,400 service stations nationwide.