Petron's First Quarter Results Lower Than Last Year

April 30, 1999 PSE CIRCULAR FOR BROKERS NO. 938-99 April 29, 1999 PETRON'S FIRST QUARTER RESULTS LOWER THAN LAST YEAR For the first quarter of 1999, Petron reported a net incomes of P893 million, slightly below the level of last year's P936 million. The decline was primarily due to the drop in sales revenues as a result of lower sales to Napocor. Domestic sales volume dropped by more than 16 per cent to 11.4 million barrels. This resulted in sales revenues lower than last year's level by around 18 per cent. Petron, however, enjoyed a slight improvement in its gross margin per barrel to increased sales of gasoline and LPG. Meanwhile Petron launched several facilities geared at meeting future standards for fuels. The Continuous Catalytic Reformer or CCR will allow Petron to produce more environment-friendly producers such as unleaded gasoline and lowersulfur diesel. Another ( Illegible portion in Philippine Stock Exchange file ) the Sulfur Recovery Unit or SRU, can convert the sulfur recovered from these products to commercially viable elemental sulfur. Last night, these facilities as well as Petron's new lube oil blending plant were inaugurated in memorable ceremonies at its new headquarters, the Petron MegaPlaza, by no less than President Joseph Ejercito Estrada and His Royal Highness Prince Salman Ban Abdulaziz Al-Sand, Governor of Riyadh, Saudi Arabia. Meanwhile, in its quarterly meeting held today, the Petron Board of Directors approved the funding for new service stations and its reimaging program worth P950 million. These projects are part of the 1999 capital program worth P2.1 billion approved earlier this year.