Petron Corp. posted a 50-percent decline in full year net income in 2018 to P7.1 billion following a sustained decline in global crude prices that resulted in inventory losses of P10 billion in the last two months of the year.
Petron said in a statement released Tuesday operating income for the year reached P18.9 billion, down 32 percent from P27.6 billion in 2017.
The oil refiner said excluding the one-time item, profits would have ended 21 percent higher at P17 billion.
“It was a challenging year, yet we captured majority of the market and remained the largest and fastest growing oil company in the country. While our long-term fundamentals remain attractive, we will continue to be prepared and responsive to market conditions,” said Petron president and chief executive officer Ramon Ang.
Consolidated sales rose 28 percent to P557.4 billion from P434.6 billion in 2017.
Petron registered a combined sales volume of 108.5 million barrels during the year, slightly higher than 107.8 million barrels sold in 2017.
The company said strong local sales of gasoline, Jet-A1 and LPG, along with improved operating efficiency contributed to the increase.
Petron retained its leadership in the retail, industrial and LPG trades, cornering majority of the market.
Petron’s refinery in Bataan hit an annual utilization rate of 95 percent last year, the highest on record, as it further increased its production of high-value fuels and petrochemicals.
Petrochemical and polypropylene sales increased 3 percent and 28 percent, respectively, driving the 7-percent increase in export volume.
Petron Malaysia’s domestic sales delivered good results in 2018. Petron has over 640 stations in Malaysia.
Petron captured a market share of 26.36 percent for 2018, besting the other oil companies. Petron captured 28.9 percent of the market for liquefied petroleum gas.
Petron is the Philippines’ largest refiner, providing nearly 40 percent of the country’s fuel requirements through its 30 terminals and over 2,400 service stations nationwide.