Petron Corporation, the country’s largest oil firm, reported Php1.73 billion income in the first quarter, a reversal, a reversal of its P4.9 billion net loss in the same quarter last year, as the economy slowly opened.
The oil giant also bounced back with a Php3.7 billion operating income for the first three months as against its Php4.4 billion operating loss in the same period last year, as it recorded inventory gains due to the recent improvements in international oil prices in contrast with the inventory loss posted from January to March 2020. The COVID-19 pandemic and the lockdowns were declared in March.
However, the pandemic’s adverse economic effects still made their way to the oil giant’s balance sheets, as consolidated revenues for the first three months of 2021 fell by 20% to Php83.3 billion from Php105 billion in 2020. This comes as the firm was only able to sell 19.4 million barrels compared to 24.7 million barrels year-on-year.
Petron also reported that it built 14 new stations within the quarter and has plans of putting up more within the year.
The company’s refinery in Limay, Bataan has likewise begun its transition into its formal inclusion in the Freeport Area of Bataan (FAB) following the approval of its registration last December. The approval came after Petron President and CEO Ramon Ang’s decision last December to temporarily close the refinery due to low margins and “unfair” taxation. Economic zones like the FAB enjoy income tax holidays.
Petron, which lost Php11.4 billion last year, is also expected to benefit with more tax incentives with the passage of Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
The oil giant has allotted Php11 billion in capital expenditures for 2021 and has recently completed the sale of its senior notes worth $550 million.
