Back to black: Petron posts P1.7B income in Q1 on oil price recovery

Oil refining giant Petron Corp. has roared back into profit in the first quarter following its battle to turn around from a massive P4.9 billion loss suffered in the same period last year.

In a regulatory filing, Petron said it opened 2021 with a P1.73 billion net income, sustaining its upward momentum in the fourth quarter of 2020.

Consolidated revenues, however, declined by 20% to P83.3 billion as demand for fuel remained tepid. Sales volumes fell 21% to 19.38 million barrels.

Despite lower revenues, however, Petron swung to an operating income of P3.7 billion from a P4.4 billion operating loss a year ago as it booked inventory gains due to the recent improvements in international oil prices.

Savings on operating expenses and financing costs also contributed to the sustained positive results.

“As a company, we are doing all that we can to create a safe and healthy work environment while ensuring that our recovery stays on track. Petron is constantly evolving, and we will continue to work towards our goal of emerging stronger from this pandemic. With the country’s vaccination program gaining more ground, we feel confident about our prospects and have, in fact, scheduled the resumption of our refining operations this June,” said Petron president and CEO Ramon S. Ang.

Petron has earmarked P11 billion for its capital expenditures this year, largely for the ongoing construction of steam generator plants, continued expansion of its retail network, and maintenance requirements.

It added 14 new stations to its network during the quarter with plans to build more for the rest of the year.

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