The country’s largest oil refiner assured consumers of continuous supply of its petroleum products while Luzon is under enhanced community quarantine, which affects more than 50 million people.
Petron Corp. also said it would make sure that there is enough fuel for vital industries while Luzon is grappling with Covid-19.
“So far, our entire supply chain is working overtime to ensure that enough products are produced at our refinery. Vessels are continuously loaded so that our terminals are filled, and tank truck operations remain consistent,” said Petron President and CEO Ramon S. Ang.
“We are also trying our best to keep as many of our stations open and filled as possible while putting the safety and well-being of our employees first,” Ang added.
Petron provides nearly 30 percent of the country’s petroleum requirements through its 180,000 barrel-per-day Bataan refinery, 30 terminals, and over 2,400 stations nationwide.
“Let me reiterate that there is no need to panic. We will step up and we will get through this together. In these critical times, rest assured that basic necessities will be delivered and our brave frontliners will reach their destinations,” added Ang.
He emphasized that the health and safety of its people remain its top priority. Petron has widely implemented a work-from-home set-up for its Luzon-based offices. Meanwhile, those working on the frontline—its office-based skeletal force, service station personnel, tank truck drivers and helpers—are guided by the necessary protocols to ensure their health and safety.
The oil industry is among those granted exemption by the government from the Luzon-wide community quarantine. At this point, Petron has fully activated its Business Continuity Plan, taking into consideration all possible scenarios.
The company’s net income last year plunged 67 percent to P2.3 billion from P7.1 billion in 2018 on account of lower sales as a result of its refinery shutdown in April last year.
Revenue in 2019 was 8 percent lower at P514.4 billion from a year ago as sales volume was slightly lower at 107 million barrels from the previous year’s 108.5 million barrels.
The oil firm’s Bataan refinery underwent emergency shutdown as a result of the earthquake. During the shutdown, Petron saw a 5-percent decline in Philippine volumes. However, Petron Malaysia’s domestic volumes grew by 3 percent. This helped offset the decline in Philippine volumes.
The company’s Philippine operations posted a net loss of P1.4 billion compared to the net income of P2.8 billion last year.
“The company’s refining business in the Philippines incurred losses due to low production, as well as start-up and stabilization activities in August to September last year. The financial results were also affected by the weak refining margins,” Petron said.
The market was volatile during the year due to political tensions in the Middle East and uncertainties in the global economy. As average Dubai crude fell to $63 per barrel in 2019 from $69 per barrel in 2018, regional prices of finished petroleum products and petrochemicals also dropped amid an oversupply but slowdown in demand. Average crude premiums in 2019 rose by almost threefold from the previous year, further depressing the margins.
Still, Petron continued to enjoy strong brand preference. Likewise, its market share was steady for about a third of the country’s domestic demand. Petron also remained the market leader in the major segments of Retail, Industrial, and LPG.