MANILA, Philippines – Petron Corporation incurred a net loss of P4.9 billion in the 1st quarter of 2020, a downturn from the P1.3 billion in net income recorded in the same period last year, as the coronavirus pandemic dampened demand.

Petron said it incurred significant inventory losses during the period, as oil prices in the world market plunged and demand in both local and international markets contracted.

The benchmark Dubai crude plummeted by 66% to $23 per barrel by end-March 2020 from $67 per barrel by end-December 2019.

Petron’s consolidated revenues declined by 16% to P104.6 billion in the 1st quarter. Combined sales volume for the Philippines and Malaysia was lower at 24.7 million barrels from the 26.3 million barrels recorded last year.

This is due to the sudden and significant drop in fuel demand as both countries imposed strict lockdowns towards the end of the quarter, limiting movement and economic activity. (READ: Are oil prices over the worst of the crisis?)

“The entire industry is going through a rough phase because of COVID-19’s impact on oil demand and prices. As expected, domestic consumption has gone down particularly in retail and aviation which is understandable because of travel bans and restrictions,” said Petron president and chief executive officer Ramon Ang.

Since the enhanced community quarantine was implemented, some Petron stations have temporarily closed or shortened their operating hours.

“Business is challenging. We have to be more prudent in managing our resources while ensuring that the needs of our customers are still met,” Ang said.

“Demand recovery will depend upon the lifting of quarantine measures and ultimately, finding a vaccine to fully restore mobility.  While we are hopeful for a swift recovery, we know that these are things we cannot rush. The health and safety of the people is still the most important.”

Amid the challenging business environment, Petron helped frontliners and hospital staff by launching a donation drive. Customers can donate their Petron value card points for the procurement of medical supplies and relief packs for health workers. 

It also allotted P1 million to assist its scholars and donated food to poor communities. – Rappler.com