Petron incurs P11.4-B net loss in 2020

Petron Corp. saw its bottom line swing into a net loss in 2020, following the double-digit decline in revenues reflecting the impact of the COVID-19 pandemic on business.

Petron on Wednesday reported a consolidated net income of P1.2 billion in the fourth quarter after consolidated revenues rose to P69.6 billion, but this was not enough to offset losses incurred in the previous quarters.

The latest figures brought the full-year earnings to a net loss of P11.4 billion from the net income of P2.3 billion in the previous year. Consolidated revenues plunged 44% to P286 billion from P514.4 billion previously.

"We have been working hard to minimize the impact of the pandemic on our business and our performance in the second half of 2020 proves that we are moving in the right direction," Petron president and chief executive officer Ramon Ang said.

"We look forward to sustaining our recovery as we anticipate higher demand and a more stable industry situation with an end to this crisis finally in sight," he said in an emailed statement.

In the same statement, Petron said its Bataan Refinery was granted approval as a registered enterprise by the Authority of the Freeport Area of Bataan (AFAB) in December 2020.

As such, it will be entitled to avail of fiscal incentives under the Special Economic Zone Act of 1995 or the Omnibus Investment Code of 1987. The company will benefit in the form of better timing on value-added tax payments, which will be upon withdrawal of the products from the refinery.

"We continue to implement various cost-saving efforts but tax efficiency is another critical area that should improve. Our AFAB registration will help make our refining business more competitive and financially viable as soon as demand recovers," said Ang.

Petron's principal business involves the refining of crude oil and the marketing and distribution of refined petroleum products such as gasoline, naphtha, liquefied petroleum gas (LPG), diesel, jet fuel, kerosene, and petrochemicals.

The company's brands include "Gasul" and "Fiesta" which it sells to households and other consumers through a dealership network.

Shares in Petron opened Wednesday at P3.44 apiece, unchanged from Tuesday's finish.—AOL, GMA News