MANILA -- Petron Corporation reported consolidated revenues of PHP124.6 billion in the first quarter of 2019, down 4 percent from the same period last year, the local oil giant's management disclosed in a statement on Wednesday.
It was explained that this was due mainly to a 5 percent decline in volume for the Philippine operations following the implementation of the TRAIN law. By now, a total of around PHP4.50/liter in excise tax plus VAT are carried by fuel prices. On a quarterly basis, this increase translated to around PHP8 billion in excise taxes and PHP1 billion in VAT.
This implementation likewise created a price advantage for importers since refiners maintain higher inventory in crude form, which is immediately taxed upon production. Importers however maintain inventories as finished products which give them the advantage for at least 30 days.
Compounding this challenge is the declining refining margins in the region, which penalized Philippine operations by PHP3.3 billion in the first quarter, Petron's management added.
The impact of the second phase of TRAIN and the rising crude prices cut down consolidated income from operations by 45 percent to PHP4.9 billion. Consolidated net income ended PHP1.3 billion from PHP5.8 billion last year. Malaysian operations accounted for PHP1.2 billion of the consolidated net income. (PR)
