Petron reports ₱1.73B net income for Q1 2021, sets ₱11B for capex

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Metro Manila (CNN Philippines, May 4) — Petron Corporation says its positive momentum is continuing well into the first three months of 2021 as it reports higher earnings for the quarter.

In a disclosure to the Philippine Stock Exchange on Monday, the firm reported a consolidated net income of ₱1.73 billion for the first quarter of 2021, surpassing the ₱1.2 billion recorded for the preceding quarter.

“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 president and chief executive officer Ramon Ang said in the disclosure statement.

The listed oil refiner and retailer’s latest earnings also reversed the ₱4.9 billion net loss it incurred for the first three months of 2020.

Petron also reported ₱3.7 billion of operating income, also flipping the ₱4.4 billion operating loss during the same period last year. The company also attributed inventory gains this time around with recent improvements to global oil prices compared to 2020.

Savings on operating expenses and financing costs contributed as well to the sustained positive results, added Petron.

Revenues, however, fell by 20% at ₱83.3 billion in the first quarter of 2021 with first quarter volumes reaching 19.38 million barrels, or a 21% annual drop, in light of the COVID-19 health crisis.

“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 Ang.

RELATED: Petron assures steady fuel supply as it suspends Bataan refinery operations by January 2021 https://www.cnnphilippines.com/business/2020/12/15/Petron-temporary-closure-Bataan-refinery-January-2021.html

The fuel products company has allocated ₱11 billion for its capital expenditures this 2021, which cover current construction of steam generator plants, strategic retail network expansion and maintenance requirements.

Just in the first quarter, Petron has set up 14 new stations and says it will be building more for the rest of 2021.

The company’s refinery in Bataan has likewise began transitioning into the Authority of the Freeport Area of Bataan following its approval as a registered-enterprise last December and has started availing of fiscal incentives from operating in a freeport zone, added Petron.

Petron also said its two major expansion projects in Port Dickson Refinery in Malaysia — the Diesel Hydrotreater (DHT) and Marine Import Facility 2 (MIF2) — have “remained on track.”

“The new DHT unit will enable the refinery to produce ultra-low Sulphur automotive diesel, while the MIF2 will expand its finished product storage capacity to support future growth in Petron Malaysia and at the same time generate savings on freight cost,” it said.The listed oil refiner and retailer informed the Philippine Stock Exchange on Monday that its “positive momentum continued well” into the first three months of 2021 with profits registered for the period.