Petron reverses losses as oil demand recovers

MANILA, Philippines — Petron Corp. returned to profits in 2021, reversing losses from the preceding year as easing pandemic restrictions revived demand for fuel.

In a disclosure sent to the Philippine Stock Exchange on Tuesday, the Ramon Ang-led oil company reported a net income of P6.14 billion in 2021, a turnaround from P11.4 billion net loss in 2020, when the pandemic hit home.

With its positive financial results and the war in Ukraine pushing up global energy prices, shares in Petron rallied 3.68% on Tuesday.

Explaining its performance, Petron credited the 5% year-on-year improvement in sales, at 82.24 million barrels, to the gradual easing of restrictions and economic reopening last year. In the latter part of 2021, the national government shifted to the use of granular lockdowns to control the spread of infections, as opposed to its old tactic of region-wide lockdowns that effectively neutered economic activity.

"To say that we’ve come a long way since the start of this pandemic would be an understatement. We have recovered significant volumes in key market segments, and more importantly, we have returned profitability to our business," Ang, the company’s president and chief executive, said.

Consolidated revenues expanded 53% on-year in 2021 to P438.06 billion, due to increased crude oil prices and improved local demand, which Petron credited for improved refining margins as it resumed its refinery operations in the semester of 2021.

Petron said construction of its new 184-megawatt power plant in its Bataan refinery complex, which will eliminate fuel oil use and convert feedstock to fuel for sale, is set to be completed.

Retail volumes likewise inched up 6.4% in 2021, amid looser pandemic curbs, while sales in Petron's industrial segment rose 2%.