Petron reports P921-M profit for 1st 9 months

Industry leader Petron Corp. registered a P921-million net income for the first nine months this year, a sharp turnaround from the P1.3-billion loss registered in the same period last year.

Virginia A. Ruivivar, Petron corporate communications manager, said this year’s performance received a big lift from the company’s third quarter results which showed a net profit of P411 million. In July to September last year, Petron registered a net loss of P657 million.

"The income we posted for the third quarter is relatively modest compared to our historical profit levels. Our cost discipline has continued to contribute to a positive bottom line," Ruivivar explained in a statement.

For the whole 2000, Petron registered a P1-billion net loss, forcing the company to freeze all expansion programs except those for compliance with the Clean Air Act.

Total sales in the first nine months this year reached 35.5 million barrels, nearly nine percent lower than the sales recorded in the same period last year. But total sales revenues grew by 7.5 percent to P67.4 billion.

Petron said the combination of rising crude prices and the depreciating peso forced oil companies to initiate a series of price adjustments including rollbacks. Officials said the figures could have been better if not for the economic slowdown, which resulted in lower fuel consumption in the manufacturing, power generation and transportation sector.

The company, which is 30-percent controlled by the government through the Philippine National Oil Co. (PNOC), remains in control of 38.3 percent of the market followed by Pilipinas Shell Petroleum Corp. (Shell).

In 2000, the company did not declare any dividends due to huge losses. However, company officials refused to state if there will be any this year.

Meanwhile, Pilipinas Shell Petroleum Corp. registered a net income of P1.805 billion in the first nine months of 2001.

Sales and operating income reached P72.771 billion while operating expenses amounted to P68.504 billion. The figures were lifted from an unaudited report sent it likewise sent to the Philippine Stock Exchange (PSE) and the Securities and Exchange Commission (SEC) – Ted Torres