MANILA – Petron Corp. posted a 41 percent plunge in its consolidated income in 2014 due to the drop in international oil prices.
The oil firm said last year’s income declined to P3 billion from the P5.1 billion posted in 2013.
“This would have been much higher if not for the net inventory loss of P6.5 billion,” the firm said in a disclosure to the stock exchange on Tuesday.
Petron noted, however, that it posted a 9 percent increase in Philippine sales volumes, which cushioned the impact of higher priced inventory being sold at lower prices in the second half of 2014.
“The price of benchmark Dubai crude fell by 44 percent from an average of US$108/barrel in June to an average of only US$60/barrel in December. This extraordinary development had a negative effect on oil companies around the world,” Petron said, adding that the same situation occurred in 2008 when global oil prices collapsed resulting in a P3.9 billion loss for the company.
The combined sales of both its Philippine and Malaysian operations jumped 6 percent to 86.5 million barrels in 2014 compared to the 81.7 million barrels the previous year.
The higher sales resulted to revenue growth of 4 percent to P482.5 billion in 2014 from P463.6 billion in 2013.
“Despite a difficult environment, we rose to the challenge and delivered strong results. We focused on completing major projects to unleash the full potential of our strategic assets and further cement our leadership in the industry,” Petron president and chief executive Ramon Ang said.
Petron is commissioning its $2-billion Refinery Master Plan Phase 2 (RMP-2) at its 180,000 barrel-per-day Bataan refinery.
It has nearly 550 stations in Malaysia, having completed 10 new service stations in 2014 and about 20 more sites are in various stages of construction and commissioning.
“The completion of our rebranding and upgrading program is a significant milestone since it lays the foundation for our further expansion in the Malaysian market. We are pleased to note that we are gaining the trust and confidence of consumers there,” Ang said.