The country’s major oil industry player Petron Corporation practically suffered bloodbath in the first half logging a net loss of P14.2 billion, and that radically wiped out the P2.6 billion net income it posted in the same period last year.
On the scale of revenues, this also declined sharply by 40-percent to P152.4 billion in the first six months compared to P254.8 billion a year ago.
Petron cited confluence of factors ranging from the scourge of the pandemic, international oil prices hitting rock bottom of US$13 per barrel and the recorded 28-percent decline in sales. And these have so far been compounded by inventory losses of the company amounting to P15 billion.
In the domestic operations of Petron as well as its offshore market in Malayasia, sales skidded 19-percent to 41.9 million barrels this year from a rosier 51.9 million barrels in the same period in 2019.
Despite pummeled financial performance within the January to June this year, Petron President and CEO
Ramon S. Ang still looks for the silver lining that could eventually reverse the impact of the niggling coronavirus pandemic that in turn had decimated the company’s top and bottom lines.
Via delineated strategies, the Petron chief executive asserted “we continue to improve our productivity and reduce our expenses to help the company cope with COVID-19’s impact.”
He similarly emphasized that the oil firm “initiated cash preservation initiatives and prudently manage our capex (capital expenditures).”
Onward, Ang indicated that the company “forecasts modest gains from inventory of about P3.5 billion in the second half of the year as prices start to recover.”
He further explained “as the economy slowly reopens, we will need to find new ways to adapt to these new and unprecedented economic realities and remain resilient,” with him emphasizing that “just as we have survived many hardships in the past, we know we can rely on our strong corporate culture to pull us through this most challenging period.”
With the more relaxed restrictions in movement of people as well as economic activities under the general community quarantine (GCQ) in the past two months, Petron noted that it was able to bring back most of its retail network to operations.
Although in the next 15-day modified enhanced community quarantine (MECQ) raised in Metro Manila and nearby provinces, it is anticipated that more stringent quarantine rules may impact again on sales.
And despite the long-drawn out plague of the health crisis, Petron is assuring the public that its stations remain safe and Covid-free, hence, putting the welfare of customers into the core of its operations.
“On top of its stringent standards, stricter safety protocols are now in place at its service stations to ensure that its customers and personnel remain protected from any threats of the virus,” the oil company stressed.