Power

Petron income falls 70% on lower refining margins

Oil refining giant Petron Corp. saw its nine-month net income drop to P3.6 billion, dragged down by a prolonged slump in refining margins in the region as well as the shutdown of its refinery in Bataan.

Oil refining giant Petron Corp. saw its nine-month net income drop to P3.6 billion, dragged down by a prolonged slump in refining margins in the region as well as the shutdown of its refinery in Bataan.

The Petron Bataan Refinery, which has a capacity of 180,000 barrels per day, resumed normal operations only in August.

Petron, however, still managed to post a modest income during the period, helped by contributions from its operations in Malaysia and efforts to manage costs and keep the business viable under the current volatile market condition.

Consolidated revenues dipped 9% to P381.7 billion as sales volume declined in the Philippines due to the Bataan Refinery’s emergency shutdown in April .

Global oil prices also remained volatile and lower compared to last year because of ongoing trade wars.

Despite the decrease in Philippine volumes, Petron’s stations within freeport zones performed better than last year. Enterprises located in Freeport zones don’t pay local and national taxes, including excise taxes.

Petron president and CEO, Ramon S. Ang reiterated its call for a level playing field to finally put an end to oil smuggling.

“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,” Ang said.

“Oil smuggling has worsened in recent years and it’s not only us in the industry but also the government and the entire nation that suffer because of it,” he added.

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