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Petron Q1 net income down 77% after full implementation of TRAIN Law


Petron Corp. registered a 77.58% drop in its consolidated net income in the first quarter of the year, following the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

In an emailed statement on Tuesday, Petron said its consolidated net income fell to P1.3 billion in the first three months of the year, dropping from the P5.8 billion it recorded the same quarter last year.

Consolidated revenues likewise declined by 4% to P124.6 billion during the period.

"This was due mainly to a 5% decline in volume for the Philippine operations following the implementation of the TRAIN Law," the company said.

Signed into law by President Rodrigo Duterte in 2017, the TRAIN Law provides that starting 2019, excise taxes for diesel will be hiked by a total of P4.50 and those of gasoline by P9.00 under the second tranche of increases.

Petron attributed the implementation of the measure to the 45% drop in its consolidated income from operations which fell to P4.9 billion in the first quarter.

"Despite lower margins, efforts to manage risks and strengthen our presence in key areas were implemented to mitigate its impact. We remain focused on completing major expansion projects that will further cement our leadership in the industry," said Petron President and CEO Ramon Ang.

"We fully understand that long-term growth will always be threatened by inherent risks, and these investments will ensure our continued growth and profitability in the future," he elaborated.

Shares of Petron Corp. closed Tuesday at P6.25 apiece, down by P0.03 or 0.48% from Monday's P6.28 per share. —LDF, GMA News

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