RAMON S. Ang-led oil company Petron Corp. said it does not anticipate any supply shortage in the near future as a result of the ongoing Russia-Ukraine conflict.
“In relation to the ongoing conflict between Russia and Ukraine…, Petron currently does not foresee issues on its oil supply on a short or medium-term basis,” the company said in its annual report released last week.
The oil company does not have term crude supply contracts with Russia. It said that it primarily sources its crude requirement from the Middle East.
“However, based on recent events and market sentiments, oil prices are expected to be high during the crisis and in the event of a protracted conflict, oil supply could become tight,” Petron noted.
The company also said it holds an estimated two months’ worth of crude oil and finished petroleum products inventory in the country.
“Geopolitical factors such as the current Russia-Ukraine conflict can affect its financial performance.”
Petron reported an attributable net income of P5.37 billion for 2021, a turnaround from a loss of P11.38 billion the previous year, owing to demand recovery.
The listed oil company said it regained momentum with improved margins, driven by the improving global vaccination rate, the reopening of economic activities, and the Organization of the Petroleum Exporting Countries’ managed output hikes.
Petron’s consolidated net income for 2021 rebounded to a P6.14-billion profit from a loss of P11.41 billion in 2020.
The company said it sold 82.24 million barrels last year, a “5% growth made possible by the easing of restrictions and restart of economic activities that improved overall demand during the period.”
“Retail volumes in the Philippines managed to grow despite granular lockdowns,” it noted.
“Growth in commercial sales remained subdued largely due to the slowdown in the aviation industry,” it added.
Petron shares closed 0.61% higher at P3.31 apiece on April 13. — R.C.S. Agustin