Petron's 9-month profits hit P3.37-B

ABS-CBN News

Posted at Nov 12 2009 06:56 PM | Updated as of Nov 13 2009 03:08 AM

MANILA - Petron Corp., the country's largest oil refiner, reported a net income of P3.37 billion for the first 9 months of the year. This brought the company to full recovery from its record loss of P3.9 billion last year.

Despite this, however, Petron said its financial performance is likely to slide again as a result of Executive Order 839, which has frozen retail prices of fuels in Luzon at October 15 levels for an unspecified period of time.

According to Petron, the company may incur a P100-million net loss in October and over P1 billion in the fourth quarter if EO 839 is not lifted until year-end. It added that the loss can be higher if international oil prices rise beyond forecast levels in the coming weeks.

“Despite more aggressive competition and a decrease in sales volumes brought about by a slowdown in economic activity, we managed to enhance our financial and operating performance in the third quarter. We are still hopeful that the company’s recovery will not be significantly derailed by the implementation of EO 839, which is currently forcing us to sell our products below cost,” Petron President Eric Recto said in a statement released Thursday.

Petron's sales revenues for the 9-month period dropped to P123.63 billion from last year's P216.43 billion due to lower selling prices of petroleum products.

Domestic sales volumes also declined to 29.86 million barrels from the 31.28 million barrels recorded in the same period last year.