SINGAPORE (ICIS)--Philippines' refiner Petron Corp on Tuesday said that it swung to a first-quarter net income of peso (Ps) 1.73bn from a loss of Ps4.9bn in the same period of 2020 on the back of higher inventory gains.
|Philippine peso (Ps) billion||Q1 2021||Q1 2020||% change|
"While Petron’s total sales performance for the first three months continued to improve compared to the average of the last three quarters of 2020, it still reflected the demand destruction from the pandemic," the company said in a statement.
First quarter volumes reached 19.4m barrels in the first quarter, 21% lower than the 24.7m barrels sold in the same period last year, it said.
Petron recorded inventory gains in the first quarter due to the recent improvements in international oil prices in contrast with the inventory loss in Q1 2020.
Savings on operating expenses and financing costs also contributed to the sustained positive results.
Petron’s two major expansion projects at its Port Dickson refinery in Malaysia – the Diesel Hydrotreater (DHT) and Marine Import Facility 2 (MIF2) – remained on track.
"The new DHT unit will enable the refinery to produce ultra-low sulphur automotive diesel, while the MIF2 will expand its finished product storage capacity to support future growth in Petron Malaysia and at the same time generate savings on freight cost," the company said.
( $1 = Ps48.1)