PSE Circular for Brokers No. 141-99

January 27, 1999 PSE CIRCULAR FOR BROKERS NO. 141-99 Press Release January 26, 1999 PETRON NETS P3 . 7 BILLION IN 1998 Petron ended 1998 with a net income of P3.7 billion, marking a significant turn around from the P631 million net loss posted by the company in 1997. This performance was aided primarily by the cost-efficiency measures that the company introduced even before the currency crisis, as well as the healthy growth in the retail and LPG markets. The company's sales revenues reached P59 billion, slightly lower than the P61 billion reached in 1997. This reflects a decline of 6.4 percent in sales volume, from 61.4 million barrels in 1997 to 57.5 million barrels. While Petron's gasoline and LPG sales continued to grow, there was a drop in demand from crisis-weakened industrial customers, notably the airline industry. The company nevertheless continues to dominate the local oil industry with an overall market share of around 42 percent. dctai Petron's year-end consolidated asset-base stood at P42.8 billion. Meanwhile the Petron board of directors, in its first quarterly meeting held today approved a capital program of P2.1 billion for 1999 for various marketing and refining projects. It also approved the allocation of P40.3 million for the upgrade of its bulk plant fire fighting system. The Board also approved the payment of a cash dividend of 20 centavos per share to stockholders as of record date February 25, 1999.