Petron reports P1.3-B loss

Industry leader Petron Corp. reported a P1.3-billion after tax loss in the first nine months this year, a sharp downturn compared to the P2-billion net income the company registered in the same period last year.

The huge loss was traced to the company’s inability to adjust pump prices in line with the rise in world crude oil prices and the continued depreciation of the peso against the dollar.

Foreign exchange losses in the third quarter alone reached a staggering P1.5 billion while its total forex losses as of end September stood at P2.8 billion. The peso which was valued at P40.4389 to a dollar at the start of the year, depreciated to P44.4368 in July and further down to P48.89 as of Oct. 23.

Petron chairman Jose Syjuco Jr. said: "The losses reflect the fact that cumulative changes in local refined petroleum product prices continue to lag behind the increase in crude oil and the dollar-peso exchange rate."

Sales revenues for the first nine months of 2000 reached P62.7 billion or 44 percent better than the P43.6 billion in the same period last year.

"The increase is due to the higher petroleum product prices with average selling prices this year being about P3.90 per liter higher than last year’s prices," Petron said in a press statement.

The country’s leading oil company and refiner failed to declare a cash or stock dividend this year due to claims of cash flow tightness and huge losses. In fact, Petron scaled down its capital outlay this year to P854 million from an original P1.7 billion.

The company reported net earnings of P2.4 billion in 1999 and P3.7 billion the year before. In 1996, it recorded net earnings of P4.2 billion and in 1995, Petron raked in P4.8 billion.– Ted Torres