Industry leader Petron Corporation (PCOR) reported consolidated revenues of P514.4 billion for full year 2019, down 8% versus 2018. The company’s sales volume was slightly lower at 107 million barrels from the previous year’s 108.5 million barrels due to the 5% decline in Philippine volumes as its Petron Bataan Refinery (PBR) underwent emergency shutdown as a result of the earthquake in April 2019. Petron Malaysia’s domestic volumes, which grew by 3%, helped offset the decline in Philippine volumes.
Despite the decrease in total sales, Petron continued to enjoy strong brand preference. Moreover, its market share held steady accounting for about a third of the country’s domestic demand. Petron also remained the market leader in the major segments of Retail, Industrial, and LPG.
Petron’s consolidated net income stood at P2.3 billion, down 67% from 2018’s P7.1 billion. Its Philippine operations posted a net loss of P1.4 billion compared to the net income of P2.8 billion last year. Following the unplanned total plant shutdown which begun in April, the Company’s refining business in the Philippines incurred losses due to low production as well as start-up and stabilization activities in August to September last year. The financial results were also affected by the weak refining margins. The market remained volatile during the year due to political tensions in the Middle East and uncertainties in the global economy. As average Dubai crude fell to US$63/bbl in 2019 from US$69/bbl in 2018, regional prices of finished petroleum products and petrochemicals also dropped amidst oversupply but slowdown in demand. On the other hand, average crude premiums in 2019 rose by almost threefold from the previous year which further depressed the margins.
“Despite the challenging business environment, we still pursued our strategic goals to sustain our leadership and deliver long-term growth for our company. Moving forward, we intend to keep our focus on further expanding our reach, strengthening our services and product offerings, and increasing our operational efficiency to better secure our position for the future,” said Petron President and CEO Mr. Ramon S. Ang.
In 2019, Petron opened 124 new stations, helping maintain its record of having the most number of stations in the country at over 2,400.
As a major highlight for the year, Petron began commercial operations of its state-of-the-art New Lube Oil Blending Plant (NLOBP) in Tondo, Manila. The plant, which has a filling capacity twice of its former plant in Pandacan, allows the company to produce its top-selling lubes and greases to better serve its market here and abroad.
Petron also commenced operations of its import terminal located at SL PHIVIDEC in Tagoloan, Misamis Oriental, improving efficiency in product handling and distribution in the southern part of the country.
Before the end of the year, all of Petron’s major facilities, including its refinery and terminals, have complied with the government’s fuel marking program, as an affirmation of the company’s support to this initiative to curb smuggling.