THREE STATEMENT

Consolidated Statement of Finan

Consolidated Statement of

Consolidated Statement of C

NOTES SCHEDULE

RATIO ANALYSIS
TATEMENT MODEL
d Statement of Financial Position

dated Statement of Income

ated Statement of Cash Flow

NOTES SCHEDULE

RATIO ANALYSIS
 PETRON CORPORATION A
CONSOLIDATED FINANCIA

Consolidated Statement of Financial Position

Note
ASSETS
Current Assets
Cash and cash equivalents 5 35 36
Financial assets at fair value 6 15 35 36
Investment in debt instruments 7 35 36
Trade and other receivable - net 8 29 35 36
Inventories - net 9
Other current assets 15 29
Total Current Assets
Noncurrent Assets
Investments in debt instruments 7 35 36
Investment in shares of stock of an associate 14
Property, plant and equipment - net 10 12 38
Right-of-use assets - net 11
Investment property - net 10 12
Deferred tax assets - net 28
Goodwill - net 13
Other noncurrent assets - net 6 15 35 36
Total Noncurrent Assets
Total Assets

LIABILITIES AND EQUITY

Current Liabilities
Short-term loans 16 34 35 36
Liabilities for crude oil and petroleum products 17 29 32 35 36
Trade and other payables 18 29 31 34 35 36 40
Lease liabilities - current position 32 34 35
Derivative liabilities 35 36
Income tax payable
Current portion of long-term debt-net 19 34 35 36
Total Current Liabilities
Noncurrent Liabilities
Long-term debt - net of current portion 19 34 35 36
Retirement benefits liability - net 31
Deferred tax liabilities - net 28
Lease liabilities - net of current portion 32 34 35
Asset retirement obligation 20
Other noncurrent liabilities 21 35 36
Total Noncurrent Liabilities
Total Liabilities

Equity Attributable to Equity Holders of the Parent Company

Capital Stock 22
Additional paid-in Capital
Capital securities
Retained earnings
Equity reserves
Treasury stock
Total Equity Attributable to Equity Holders of the Parent
Company
Non-Controlling Interests 13
Total Equity
CORPORATION AND SUBSIDIARIES
OLIDATED FINANCIAL STATEMENTS
(Amounts in Million Pesos)

HORIZONTAL ANALYSIS
December 31
2021 2020 Amount Increase/Decrease

36,406.00 27,053.00 9,353.00

1,005.00 603.00 402.00
184.00 -184.00
51,745.00 27,195.00 24,550.00
67,684.00 44,922.00 22,762.00
31,195.00 32,337.00 -1,142.00
188,035.00 132,294.00 55,741.00

- 197.00 197.00
1,012.00 1,012.00
171,602.00 168,831.00 2,771.00
5,648.00 6,045.00 -397.00
29,175.00 30,049.00 -874.00
2,172.00 2,190.00 -18.00
8,235.00 8,031.00 204.00
1,541.00 2,088.00 -547.00
219,385.00 217,431.00 1,954.00
407,420.00 349,725.00 57,695.00

109,196.00 77,704.00 31,492.00

42,641.00 22,320.00 20,321.00
14,001.00 15,402.00 -1,401.00
1,335.00 1,243.00 92.00
997.00 1,124.00 -127.00
302.00 162.00 140.00
21,580.00 31,114.00 -9,534.00
190,052.00 149,069.00 40,983.00
0.00
 81,065.00 88,340.00 -7,275.00
3,327.00 3,705.00 -378.00
3,784.00 3,084.00 700.00
14,220.00 14,561.00 -341.00
2,857.00 2,867.00 -10.00
1,202.00 1,904.00 -702.00
106,455.00 114,461.00 -8,006.00
296,507.00 263,530.00 32,977.00

9,485.00 9,485.00 0.00

37,500.00 37,500.00 0.00
62,712.00 36,481.00 26,231.00
30,232.00 29,799.00 433.00
-18,341.00 -18,371.00 30.00
-18,000.00 -15,122.00 -2,878.00

103,588.00 79,772.00 23,816.00

7,325.00 6,423.00 902.00

110,913.00 86,195.00 24,718.00
407,420.00 349,725.00 57,695.00
HORIZONTAL ANALYSIS

Percentage Change

35%
67%
-
90%
51%
-4%
42%

-
-
2%
-7%
-3%
-1%
3%
-26%
1%
16%

41%
91%
-9%
7%
-11%
86%
-31%
27%
 -8%
-10%
23%
-2%
0%
-37%
-7%
13%

100%
100%
72%
1%
0%
19%

30%

14%
29%
16%
 PETRON CORPORATION AND
CONSOLIDATED FINANCIAL S
(Amounts in Million Pesos, Except Per Sha

Consolidated Statement of Income

Note
SALES 29 32
COST OF GOODS SOLD 23
Gross Profit
SELLING AND ADMINISTRATIVE EXPENSES 24
OTHER OPERATING INCOME 30
INTEREST EXPENSE AND OTHER FINANCING CHARGES 27
INTEREST INCOME 27
SHARE IN NET INCOME OF AN ASSOCIATE 14
OTHER EXPENSES - Net 27

INCOME (LOSS) BEFORE INCOME TAX

INCOME TAX EXPENSE (BENEFIT) 28
NET INCOME (LOSS)
Attributable to:
Equity holders of the Parent Company 33
Non-controlling interests 13

BASIC/DILUTED EARNINGS (LOSS) PER COMMON SHARE

ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
COMPANY 33
NET INCOME (LOSS)
OTHER COMPREHENSIVE LOSS
Item that will not be reclassified to profit or loss
Equity reserve for retirement plan 31
Income tax benefit (expense) 28

Item that will not be reclassified to profit or loss

Income (loss) on cash flow hedges 36
Exchange differences on translation of foreign operations

Unrealized fair value gains on investments in debt

instruments at fair value through other comprehensive
income 7
Share in other comprehensive income of a joint venture
Income tax benefit (expense) 28
OTHER COMPREHENSIVE INCOME (LOSS) - Net of tax
TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE YEAR - Net
of tax
Attributable to:
Equity holders of the Parent Company
Non-controlling interests 13
N CORPORATION AND SUBSIDIARIES
NSOLIDATED FINANCIAL STATEMENTS
(Amounts in Million Pesos, Except Per Share Data)

VERTICAL ANALYSIS
December 31 Common Size
2021 2020 202100.00%
438,057.00 286,033.00 100.00%
407,558.00 277,320.00 93.04%
30,499.00 8,713.00 6.96%
-14,557.00 -14,389.00 -3.32%
1,273.00 1,047.00 0.29%
-10,008.00 -11,313.00 -2.28%
564.00 780.00 0.13%
8.00 0.00%
-482.00 -1,049.00 -0.11%
-23,202.00 -24,924.00 -5.30%
7,297.00 -16,211.00 1.67%
1,161.00 -4,798.00 0.27%
6,136.00 -11,413.00 1.40%

5,369.00 -11,380.00 1.23%

767.00 -33.00 0.18%
6,136.00 -11,413.00 1.40%

0.05 -1.58 0.00%

6,136.00 -11,413.00 1.40%

-597.00 -631.00 -0.14%

-213.00 191.00 -0.05%
-810.00 -440.00 -0.18%

202.00 100.00 0.05%

880.00 -1,330.00 0.20%

1.00 0.00%
10.00 0.00%
-65.00 -30.00 -0.01%
1,017.00 -1,249.00 0.23%
 207.00 -1,689.00 0.05%

6,343.00 -13,102.00 1.45%

5,399.00 -12,852.00 1.23%

944.00 -250.00 0.22%
6,343.00 -13,102.00 1.45%
VERTICAL ANALYSIS
Common Size
202000.00%
100.00%
96.95%
3.05%
-5.03%
0.37%
-3.96%
0.27%
0.00%
-0.37%
-8.71%
-5.67%
-1.68%
-3.99%

-3.98%
-0.01%
-3.99%

0.00%
-3.99%

-0.22%
0.07%
-0.15%

0.03%
-0.46%

0.00%
0.00%
-0.01%
-0.44%
-0.59%

-4.58%

-4.49%
-0.09%
-4.58%
 PETRON CORPORATION AND S
CONSOLIDATED FINANCIAL STA
(Amounts in Million Pesos)

Consolidated Statements of Cash Flows

Note 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Income (loss) before income tax ₱ 7,297.00
Adjustments for:
Share in net income of an associate 14 8.00
Depreciation and amortization 26 9,848.00
Interest expense and other financing charges 27 10,008.00
Retirement benefit costs 31 289.00
Interest income 27 564.00
Unrealized foreign exhange losses (gains)- net 2,811.00
Other losses (gains)- net 1,228.00
Operating Income before working capital changes ₱ 32,053.00
Changes in noncash assests, certain current liabilities and
others 29,322.00
Cash generated from (used in) operations 61,375.00
Contribution to retirement fund 31 -810.00
Interest paid -9,274.00
Income taxes paid -365.00
Interest received 650.00

Net Cash Flows provided by (used in) operating activities 51,576.00

CASH FLOWS FROM INVESTING ACTIVITIES

Additions to property, plant and equipment 10 9,195.00
Proceeds from sale of propert and equipment 131.00
Acquisitions of investment property 12 695.00
Proceeds from sale of investment property
Increase in other noncurrent assets
Proceeds from disposal (acquisition) of:
Investment in subsidiary- net 13
Investments in debt instruments 7
Net Cash Flows used in investing activities 10,021.00
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from availment of loans and bonds 227,057.00
Payments of:
Loans and bonds 215,431.00
Lease liabilities 30 2,226.00
 Cash dividends and distributions 22 4,655.00
Issuance of preferred shares 22
Redemption of preffered shares 22 2,878.00
Issuance of capital securities 22 26,231.00
Net Cash Flows provided by financing activities 478,478.00
EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH
1,682.00
EQUIVALENTS

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 9,353.00

CASH AND CASH EQUIVALENTS AT BEGGINING OF YEAR 27,053.00

CASH AND CASH EQUIVALENTS AT END OF YEAR NOTE SCHEDULE'!A9 36,406.00
TION AND SUBSIDIARIES
INANCIAL STATEMENTS
nts in Million Pesos)

Horizontal Analysis
December 31
2020 Amount Increase/Decrease Percentage Change

16,211.00 23,508.00 145%

8.00
9,490.00 358.00 4%
11,313.00 -1,305.00 -12%
289.00 0.00 0%
780.00 -216.00 -28%
2,308.00 5,119.00 222%
994.00 234.00 24%
41,385.00 -9,332.00 -23%

12,031.00 17,291.00 144%

53,416.00 7,959.00 15%
-315.00 -495.00 157%
-10,758.00 1,484.00 -14%
-110.00 -255.00 232%
886.00 -236.00 -27%
43,119.00
8,457.00 20%
0.00
8,167.00 1,028.00 13%
144.00 -13.00 -9%
591.00 104.00 18%
0.00
43.00 -43.00 -100%
0.00
181.00 -181.00 -100%
39.00 -39.00 -100%
9,165.00 856.00 9%
0.00
151,408.00 75,649.00 50%
0.00
155,604.00 59,827.00 38%
2,361.00 -135.00 -6%
 4,423.00 232.00 5%
0.00
2,878.00
11,298.00 14,933.00 132%
325,094.00 153,384.00 47%
1,579.00
103.00 7%
7,165.00
2,188.00 31%
34,218.00 -7,165.00 -21%
-41,383.00 77,789.00 -188%
 PETRON CORPORATION AND SUBS
NOTES SCHEDULE

5. Cash and Cash Equivalents

This account consists of:

Note 2021
Cash on Hand 1,088
Cash in Banks 8,972
Short-term placements 26,346
35 , 36 36,406

6. Financial Asset at Fair Value

This account consists of:

Note 2021
Proprietary membership shares 298
Derivative assets not designated as cash flow hedge 687
Derivative assets designated as cash flow hedge 53
35 , 36 1,038
Less noncurrent portion 15 33
1,005

7. Investments in Debt Instruments

This account consists of:

Note 2021
Government securities P-
Other debt instruments -
14, 35, 36 -
Less current portion -
P-
 Note 2021
Due in one year or les P-
Due after one year through six years -
14, 35,36 P-

Note 2021
Financial assets at amortized cost P-
Financial assets at FVOCI -
14, 35,36 P-

Note 2021
Financial Assets at FVOCI
Balance as of January 1 P126
Disposals* -126
Amortization of Premium -
Unrealized fair value gains -
Balance as of December 1
Financial Assets at Amortized Cost
Balance as of January 1 255
Additions -
Disposals* -255
Balance as of December 31 -
14, 35, 36 P-

8. Trade and Other Receivables

This account consists of:

Note 2021
Trade 35 32,705
Related parties-trade 29, 35 2,684
Allowance for impairment loss on trade receivables -839
34,550
Government 14,853
Related parties-non-trade 29 1,193
Others 1,338
Allowance for impairment loss on non trade receivables -189
17,195
35,36 51,745

Note 2021
Balance at beginning of year 1,302
Additions 24 28
Write off 4 -6
Reserval/reclassifications 3
Currency translation adjustment 16
Balance at end of year
Less noncurrent portion for long-term receivable 35 315
P1,028

Weighted Average Gross Carrying

Loss Rate Amount
December 31, 2021
Retail 2.46% P4,470
Lubes 1.24% 646
Gasul 4.47% 1,186
Industrial 2.08% 17,104
Others 1.71% 29,367
P52,773

Weighted Average Gross Carrying

Loss Rate Amount
December 31, 2020
Retail 2.62% P4,350
Lubes 0.16% 621
Gasul 6.96% 790
Industrial 3.99% 7,760
Others 3.51% 14,669
P28,190

9. Inventories

This account consists of:

2021 2020
Crude oil and others 32,753 17,433
Petroleum 26,168 19,414
Materials and supplies 5,458 5,503
Lubes, greases and aftermarket specialties 3,485 2,572
67,684 44,922

Note 2021
Balance at beginning of year P613
Additions/reductions:
Inventory obsolescence 4 -43
Inventory write-down 4 37
Reversals -
Balance at end of year P607

10. Property, Plant and Equipment

Building and Improvements
Note and Related Facilities
Cost
January 1, 2020, as previously reported P22,717
Adjustment due to reclassification from other
noncurrent assets -
January 1, 2020, as adjusted 22,717
Additions 243
Disposals/reclassifications 970
Reclassifications to/from investment property 12 -162
Currency translation adjustment -271
December 31, 2020 23,497
Additions 113
Disposals/reclassifications 880
Reclassifications to/from investment property 12 -223
Currency translation adjustment 296
December 31, 2020 24,563
Accumulated Depreciation
January 1, 2020, as previously reported 13,205
Adjustment due to reclassification from other
noncurrent assets -
January 1, 2020, as adjusted 13,205
Depreciation 858
Disposals/reclassifications -73
Reclassifications to/from investment property 12 -
Currency translation adjustment -197
December 31, 2020 13,793
Depreciation 875
Disposals/reclassifications -47
Reclassifications to/from investment property 12 -
Currency translation adjustment 173
December 31, 2021 14,794
Carrying Amount
December 31, 2020 P9,704
December 31, 2021 P9,769

11. Right-of-Use Assets

Building and Improvements
 Land and Related Facilities
Cost
January 1, 2020 5526 1055
Additions 204 2
Remeasurements 867 39
Currency translation adjustment -30 -3
December 31, 2020 6,567 1,093
Additions 171 421
Remeasurements -517 -406
Currency translation adjustment 20 3
December 31, 2021 6,241 1,111
Accumulated Depreciation
January 1, 2020 872 221
Remeasurements -115 -1
Depreciation 440 225
Currency translation adjustment -8 -1
December 31, 2020 1,189 444
Remeasurements -132 -406
Depreciation 415 201
Currency translation adjustment 6 2
December 31, 2021 1,478 241
Carrying Amount
December 31, 2020 5378 649
December 31, 2021 4,763 870

12. Investment Property

Note Land
Cost
January 1, 2020 9,253
Additions 3
Disposals/reclassifications -
Reclassification from/to property,plant and equi 10 69
Remeasurements -
Currency translation adjustment -117
December 31, 2020 9,208
Additions 5
Disposals/reclassifications -
Reclassification from/to property,plant and equi 10 -46
Currency translation adjustment 86
December 31, 2021 9,253
Accumulated Depreciation
January 1, 2020 -
Depreciation -
Disposals/reclassifications -
Reclassification from/to property,plant and equi 10 -
Currency translation adjustment -
December 31, 2020 -
Depreciation -
Disposals/reclassifications -
Reclassification from/to property,plant and equi 10 -
Currency translation adjustment -
December 31, 2021 -
Carrying Amount
December 31, 2020 9,208
December 31, 2021 9253

13. Investment in Shares of Stock

of Subsidiaries, Goodwill and Non-
controlling Interests

14. Investment in Shares of stock

of an Associate

Cash and cash equivalents P3,677

Trade and other receivables - net 568
Investments in debt instruments 381
Other current assets 91
Deferred tax assets - net 10
Trade and other payables -733
Deposits for future subscription -3,000
Equity reserves -3
Total P991

December 31, 2021

Percentage of ownership 25.06%
Current assets P7,075
Noncurrent assets 649
Current Liabilities -3,686
Net Assets P4,038
Revenue P1,749
Net Income P40
Share in Net Assets P1,012
Carrying amount of investment in shares
of stock of an associate P1,012
15. Other Assets
Note 2021
Current
Prepaid taxes P26,754
Input VAT 3,011
Prepaid expenses 29 1,097
Special-purpose fund 158
Assets held for sale -
Tax recoverable 5
Others-net 170
31,195

Noncurrent
Input VAT P127
Catalyst-net 489
Prepaid Rent 202
Derivative assets designated as cash flow hedge 6,35,36 33
Noncurrent deposits 35,36 128
Intangibles - net 4 139
Others - net 423
1,541

16. Short-term Loans

17. Liabilities for crude oil and

petroleum products

18. Trade and Other Payables

19. Long-Term Debt

20. Asset Retirement Obligation

21. OTHER NON CURRENT

LIABILITIES

22. EQUITY
23. COST OF GOODS SOLD

24. SELLING AND

ADMINISTRATIVE EXPENSES

25. PERSONNEL EXPENSES

26. DEPRECIATION AND

AMORTIZATION
Note 2021
Cost of goods sold:
Property, plant and equipment 10 4,794.00
Right-of-use assets 11 129.00
Other assets 15 176.00
5,099.00
Selling and administrative expenses
Property, plant and equipment 10 2,259.00
Right-of-use assets 11 490.00
Investment property 12 1,933.00
Intangible assets and others 15 67.00
24 4,749.00
38 9,848.00

27. Interest Expense and Other

Financing Charges, Interest
Income and Other Expense

28. INCOME TAXES

29. Related Party Disclosures

30. Lease Commitments

31. Retirement Plan

32. Signifant Agreements

33. Basic and Diluted Earnings

(Loss) Per Share
2021
Net income(loss) attributable to equity holders
5,369
of the Parent company
Dividends on preffered shares for the year -1,899
Distributions to holders of capital securities -3,037
Net income (loss) attributable to common
433
shareholders of the Parent Company (a)
Weighted average number of common shares
9,375
outstanding (in millions) (b)
Basic/Diluted earnings (loss) per common share
attributable toequity holders of the Parent 0.05
Comapany (a/b)

34. Supplemental Cash Flow

Information

35. Information on the Group's US dollar-

denominated financial assets and liabilities and their
Philippine peso equivalents are as follows:

35. Financial Risk Management

Objectives and Policies

2021
US Dollar (in millions) Phil. Peso Equivalent
Assets
Cash and cash equivalents 569 29012
Trade and other receivables 522 26624
Other assets 16 815
1107 56451
Liabilities
Short-term loans 294 14989

Liabilities for crude oil and petroleum products 793 40465

Long-term debts (including current maturities) 880 44869

Other liabilities 538 27,416

2505 127739
Net foreign
currency-denominated monetary liabilities -1398 -71288

December/31/2021
December/31/2020
December/31/2019

P1 Decrease in the US Dollar Exchange Rate

Effect on Income before
Effect on Equity
2021 Income Tax
Cash and cash equivalents -416 -465
Trade and other receivables -56 -509
Other assets -11 -13
-483 -987
Short-term loans - 294

Liabilities for crude oil and petroleum products 380 1059

Long-term debts (including current maturities) 880 660

Other liabilities 13 174

1273 2187
790 1200

P1 Decrease in the US Dollar Exchange Rate

Effect on Income before
Effect on Equity
2020 Income Tax
Cash and cash equivalents -351 -349
Trade and other receivables -14 -148
Other assets -5 -17
-370 -514
Short-term loans 20 118

Liabilities for crude oil and petroleum products 262 618

Long-term debts (including current maturities) 1266 886

Other liabilities 36 123

1584 1745
1214 1231

2021 <1 YEAR 1<2 YEARS

Fixed Rate
Philippine peso
6893 10393
denominated
Interest rate 4.59% -5.8% 4.59% -5.5%

Floating Rate
US$ denominated
13078 19307
(expressed in Php)
Interest rate 1,3,6 mos. Libor + margin 1,3,6 mos. Libor + margin

JPY denominated (expressed in Php) 1899 1899

Interest rate 1,3,6 mos. Libor + margin 1,3,6 mos. Libor + margin
21870 31599
*The Parent Company reprices every month but has been given an option to reprice every 3 or 6 months.

2020 <1 YEAR 1<2 YEARS

Fixed Rate
Philippine peso
19268 6893
denominated
Interest rate 4.0% - 5.8% 4.6% -5.8%

Floating Rate
US$ denominated
12294 17837
(expressed in Php)
Interest rate 1,3,6 mos. Libor + margin 1,3,6 mos. Libor + margin

JPY denominated (expressed in Php) - 1996

Interest rate 1,3,6 mos. Libor + margin 1,3,6 mos. Libor + margin
31562 26726
*The Parent Company reprices every month but has been given an option to reprice every 3 or 6 months.

Credit Risk
Note 2021
Cash in banks and cash equivalents 5 35318
Derivative assets 6 740
Investments in debt instruments 7-
Trade and other receivables - net 8 51745
Noncurrent deposits 15 128
87931

Trade Accounts Receivables Per Class

CLASS A CLASS B
December/31/2021
Retail 2464 1561
Lubes 571 72
Gasul 955 118
Industrial 7485 7110
Others 8460 3417
19935 12278

Trade Accounts Receivables Per Class

 CLASS A CLASS B
December/31/2020
Retail 1704 2277
Lubes 535 83
Gasul 613 111
Industrial 2361 4657
Others 3464 2418
8677 9546

Financial Assets at Amorti

Lifetime ECL - not credit
12-month ECL
impaired
Cash in banks and cash equivalents 35318 -
Trade and other receivables - 51745
Derivative assets not designated as cash flow
- -
hedge

Derivative assetsdesignated as cash flow hedge - -

Investments in debt
- -
instruments
Long-term receivables - net - -
Noncurrent deposits 128 -
35446 51745

Financial Assets at Amorti

Lifetime ECL - not credit
12-month ECL
impaired
Cash in banks and cash equivalents 25970 -
Trade and other receivables - 27195
Derivative assets not designated as cash flow
- -
hedge

Derivative assetsdesignated as cash flow hedge - -

Investments in debt
255 -
instruments
Long-term receivables - net - -
Noncurrent deposits 121 -
26346 27195

CAPITAL MANAGEMENT
2021 2020
Total Assets 407420 349725
Total Liabilities 296507 263530
Total Equity 110913 89195
Debt to equity ratio 2:07:01 3:01:01
Assets to equity ratio 3:07:01 4:01:01

36. Financial Assets and Financial

Liabilities
2021
Note
Carrying Ammount
Financial assets (FA):
Cash and cash equivalents 5 36,406
Trade and other receivables 8 51745
Investments in debt instruments 7-
Noncurrent deposits 15 128
FA at amortized cost 88,279
Investments in debt instruments 7-
Derivative assets designated
6 53
as cash flow hedge
FA at FVOCI 53
Financial assets at FVPL 6 298
Derivative assets not designated as cash flow
6, 15 687
hedge
FA at FVPL 985
Total financial assets 89,317

2021
Note
Carrying Ammount
Financial liabilities (FL):
Short-term loans 16 109196
Liabilities for crude oil and
17 42641
petroleum products
Trade and other payables* 18 7598
Long-term debt including current portion 19 102645
Derivative liabilities designated
21 116
as cash flow hedge
Cash bonds 21 450
Cylinder deposits 21 687
Other noncurrent liabilities** 21 40
Other FL 263373
Derivative liabilities not designated as cash
flow hedge 906
Total financial liabilities 264279

Derivative Instruments Accounted for as Cash Flow Hedges

The Group designated the following derivative financial instruments as cash flow hedges (Note 35).
 Maturity
December/31/2021 1 Year of Less >1 Year - 2 Years
Foreign Currency Risk
Call Spread Swaps
Notional amount US$40 US$ -
Average strike rate P51.96 to P54.47 P-
Foreign Currency and Interest Rate Risk
Cross Currency Swap
Notional amount US$20 US$20
Average strike rate P47.00 to P57.00 P47.00 to P56.50
Fixed interest rate 4.19% to 5.75% 4.19% to 5.75%
Interest Rate Risk
Interest Rate Collar
Notional amount US$15 US$30
Interest rate 0.44% to 1.99% 0.44% to 1.99%

Maturity
December/31/2020 1 Year of Less >1 Year - 2 Years
Foreign Currency Risk
Call Spread Swaps
Notional amount US$50 US$50
Average strike rate P52.41 to P54.87 P52.41 to P55.02
Foreign Currency and Interest Rate Risk
Cross Currency Swap
Notional amount US$20 US$30
Average strike rate P47.00 to P57.00 P47.00 to P56.83
Fixed interest rate 4.19% to 5.75% 4.19% to 5.75%
Interest Rate Risk
Interest Rate Collar
Notional amount US$15 US$30
Interest rate 0.44% to 1.99% 0.44% to 1.99%

The table below summarizes the amounts pertaining to the designated hedged item

Change in Fair Value Used

December /31/2021 for Measuring Hedge Hedging Reserve
Ineffectiveness
Foreign Currency Risk
US dollar-denominated loan -8
Foreign Currency and Interest Rate Risk
US dollar-denominated loan 67 -72
Interest Rate Risk
US dollar-denominated loan 4 -3
 Change in Fair Value Used
December /31/2020 for Measuring Hedge Hedging Reserve
Ineffectiveness
Foreign Currency Risk
US dollar-denominated loan 85
Foreign Currency and Interest Rate Risk
US dollar-denominated loan 467 -187
Interest Rate Risk
US dollar-denominated loan 28 -20

The table below summarizes the amounts pertaining to the designated hedged instrument as of December 31,2021 and 2020

Carrying Amount

December /31/2021 Notional Amount Assets

Foreign Currency Risk US$40 P20

Call spread swaps

Foreign Currency and Interest Rate Risk 50 32

Cross currency swap

Interest Rate Risk 60 1

Interest rate collar

December /31/2020 Notional Amount Assets

Foreign Currency Risk US$100 P11

Call spread swaps

Foreign Currency and Interest Rate Risk 80

Cross currency swap

Interest Rate Risk 90

Interest rate collar

The table below provides a reconciliation by risk category of components of equity and analysis of OCI items, net of tax, resulti

December 31,2021
Hedging Reserve Cost of Hedging Reserve
Balance at beginning of year -207 54
Changes in fair value:
Foreign currency risk 28 4
Foreign currency risk and interest rate 448 -216
Interest rate risk 24 -16
Amount reclassified to profit or loss :
Foreign currency risk -28 61
Foreign currency risk and interest rate risk -276 168
Interest Rate Risk 16
Income Tax effect -64
Balance at end of year -75 71

Fair Value Changes on Derivatives not Designated as Cash Flow Hedge

Note 2021
Fair value at beginning of year -924
Net changes in fair value during the year 27 344
Fair value of settled instruments 1219
Fair value at end of year 639
 2021 2020
LEVEL 2 LEVEL 2
Financial Assets
FVPL 298 275
Derivative assets 740 334
Investments in debt instruments - 126
Financial Liabilities
Derivative liabilities -1022 1416

Major Csutomer
Petroleum Insurance
2021
Revenue:
External sales 435,582 -
Inter-segment sales 175,205 125
Operating income 16,860 112
Net income 7,749 116
Assets and liabilities:
Segment assets* 457,506 2891
Segment liabilities* 318,567 977
Other segment information:
Property, plant and equipment 171,029 -
Depreciation 9,930 -
Interest expense 10,149 -
Interest income 653 4
Income tax expense 1141 3
*excluding deferred tax assets and liabilities
**revenues from the use of loaned equipment are presented as part of leasing while revenues from consumer
loyalty program and provisions of technical support are presented as part of others.

Petroleum Insurance
2020
Revenue:
External sales 283,885 -
Inter-segment sales 86,363 76
Operating income -5,401 53
Net income (Loss) -10,628 104
Assets and liabilities:
Segment assets* 387,619 3353
Segment liabilities* 274,483 1907
Other segment information:
Property, plant and equipment 168,289 -
Depreciation 9,565 -
Interest expense 11,416 -
Interest income 853 30
Income tax expense -4841 6
*excluding deferred tax assets and liabilities
**revenues from the use of loaned equipment are presented as part of leasing while revenues from consumer
loyalty program and provisions of technical support are presented as part of others.

Petroleum Insurance
2019
Revenue:
External sales 511,921 -
Inter-segment sales 228,613 102
Operating income 15,579 78
Net income 5,017 70
Assets and liabilities:
Segment assets* 444,239 4355
Segment liabilities* 319,412 2981
Other segment information:
Property, plant and equipment 167,260 -
Depreciation 13,326 -
Interest expense 13,647 -
Interest income 1388 44
Income tax expense 1345 26

Retail Lube
2021
Revenue 206337 5318
Property, plant and equipment 7943 32
Capital expenditures 1363 4
2020
Revenue 149406 3577
Property, plant and equipment 9057 37
Capital expenditures 2382 1
2019
Revenue 249210 4474
Property, plant and equipment 9949 40
Capital expenditures 1892 2

Geographical Segments
2021 2020
Local 311567 282871
International 93681 64664
405248 347535

Disaggregation of Revenue
 Petroleum Insurance

Local 221676 4
International 390111 121
2020
Local 165139 -
International 205109 76
2019
Local 299668 60
International 440865 42
**revenues from the use of loaned equipment are presented as part of leasing while revenues from consumer
loyalty program and provisions of technical support are presented as part of others.
ION AND SUBSIDIARIES
TES SCHEDULE

2020
1,083
4,253
21,717
27,053

2020
275
322
12
609
6
603

2020
P225
156
381
184
P197
 2020
P184
197
P381

2020
P255
126
P381

2020

P163
-37
-1
1
126

257
69
-71
255
381

2020
19,372
932
-823
19,481
5,292
1,636
958
-172
7,714
27,195

2020
1,260
67
 -8
-
-17
1,302
307
P995

ECL

P110
8
53
355
502
P1,028

ECL

P114
1
55
310
515
P995

2020
P1,104

73
-
-564
 P613

Refinery and Plant Service Stations and Computers, Office and Land and Leasehold
Equipment Other Equipment Motor Equipment Improvements

P192,451 P19,280 P5,652 P4,162

422 - - -
192,873 19,280 5,652 4,162
446 560 222 -
1,360 259 77 71
- - - -31
-430 -315 64 -68
192,249 19,784 5,887 4,134
1,903 149 111 92
9,918 -89 271 98
- - - -50
751 243 61 50
206,821 20,087 6,330 4,324

61,390 12,832 4,672 1,094

96 - - -
61,486 12,832 4,672 1,094
4,096 1,028 457 92
-20 -44 -84 3
- - - -7
-318 -126 -51 -1
65,244 13,690 4,994 1,181
4,687 941 459 91
-1 -13 -65 4
- - - -4
241 134 46 1
70,171 14,752 5,434 1,273

P129,005 P6,094 P893 P2,953

P136,650 P5,335 P896 P3,051

Services Stations and Other

Equipment Total

24 6605
- 206
- 906
- -33
24 7,684
- 592
- -923
23
24 7,376

3 1,096
- -116
3 668
- -9
6 1,639
- -538
3 619
- 8
9 1,728

18 ₱6,045.00
15 ₱5,648.00

Land and Leasehold Building and

Improvements Improvements Right-of-Use Total

5676 17562 11543 44034

321 588 849 1,761
- 19 -110 -91
31 236 - 336
- - 90 90
-284 -335 - -736
5,744 18,070 12,372 45,394
204 486 117 812
- 118 -131 -13
96 233 - 283
213 252 - 551
6,257 19,159 12,358 47,027

4,122 8,978 999 14,099

 318 685 941 1,944
- -10 -110 -120
-7 - - -7
-239 -332 - -571
4,194 9,321 1,830 15,345
329 720 884 1,933
- 40 -154 -114
-4 - - -4
269 423 - 692
4,788 10,504 2,560 17,852

1,550 8,749 10,542 30,049

1,469 8,655 9,798 29,175
 2020

P22,038
7,698
2,101
158
13
131
198
32,337

P588
552
290
6
121
138
393
2,088
2020

4,363.00
178.00
261.00
4,802.00

2,168.00
490.00
1,944.00
86.00
4,688.00
9,490.00

2020
 -11,380

-1,578
-1,816

-14,774

9,375

1.58

2020
US Dollar (in millions) Phil. Peso Equivalent

455 21827
137 6589
18 869
610 29285

124 5971

434 20853

1266 60786

134 6430
1958 94040

-1348 -64755

Php to US$
50.999
48.023
 50.635

P1 Increase in the US Dollar Exchange Rate

Effect on Income before
Effect on Equity
Income Tax
416 465
56 509
11 13
483 987
- -294

-380 -1059

-880 -660

-13 -174
-1273 -2187
-790 -1200

P1 Increase in the US Dollar Exchange Rate

Effect on Income before
Effect on Equity
Income Tax
351 349
14 148
5 17
370 514
-20 -118

-262 -618

-1266 -886

-36 -123
-1584 -1745
-1214 -1231

2<3 YEARS 3<4 YEARS 4<5 YEARS <5 YEARS

16057 16425 - 9000

4.59% -7.8% 4.59% -8.1% - 4.30%
 5828 - - -

1899 949 - -
1,3,6 mos. Libor + margin 1,3,6 mos. Libor + margin
23784 17374 0 9000
or 6 months.

2<3 YEARS 3<4 YEARS 4<5 YEARS <5 YEARS

10393 16057 7425 -

4.5% - 5.5% 4.6% - 7.8% 4.6% - 8.1% -

18180 5489 - -

1,3,6 mos. Libor + margin 1,3,6 mos. Libor + margin

1996 1996 998 -

1,3,6 mos. Libor + margin 1,3,6 mos. Libor + margin
30569 23542 8423 0
or 6 months.

2020
25970
334
381
27195
121
54001

counts Receivables Per Class

CLASS C TOTAL

445 4470
2 645
113 1186
2509 17104
107 11984
3176 35389

counts Receivables Per Class

 CLASS C TOTAL

370 4351
3 621
66 790
743 7761
899 6781
2081 20304

2021
Financial Assets at Amortized Cost
Lifetime ECL - credit
Financial Assets at FVPL Financial Assets at FVOCI TOTAL
impaired
- - - 35318
1028 - - 52773

- 687 - 687

- - 53 53

- - - 0

315 - 315
- - 128
1343 687 53 89274

2020
Financial Assets at Amortized Cost
Lifetime ECL - credit
Financial Assets at FVPL Financial Assets at FVOCI TOTAL
impaired
- - - 25970
995 - - 28190

- 322 - 322

- - 12 12

- - 126 381

307 - 307
- - 121
1302 322 138 55303
2021 2020
Fair Value Carrying Ammount Fair Value

36,406 27053 27053

51745 27195 27195
- 255 255
128 121 121
88,279 54,624 54,624
- 126 126

53 12 12

53 138 138
298 275 275

687 322 322

985 597 597

89,317 55,359 55,359

2021 2020
Fair Value Carrying Ammount Fair Value

109196 77704 77704

42641 22320 22320

7598 9402 9402

102645 119454 119454

116 592 592

450 947 947

687 617 617
40 48 48
263373 231084 231084

906 824 824

264279 231908 231908
Maturity
<2 Years- 5 Years Total

US$ - US$40
P- -

US$10 US$50
P47.00 to P56.50
4.19% to 5.75%

US$15 US$60
0.44% to 1.99% -

Maturity
<2 Years- 5 Years Total

US$ - US$100
P- -

US$30 US$80
P47.00 to P56.50
4.19% to 5.75%

US$45 US$90
0.44% to 1.99% -

Cost of Hedging Reserve

65
 Cost of Hedging Reserve

-40

94

of December 31,2021 and 2020

Carrying Amount

Line Item in the Changes in the Fair Value

Consolidated Statement of the Hedging Cost of Hedging
Liabilities of Financial Position Instrument Recognized in Instrument in OCI
where the Hedging OCI
Instrument is included

P12 Financial assets at FVPL,Deri P8 P4

Other noncurrent
assets,Derivative
99 -67 -216
liabilities, Other
noncurrent liabilities

Derivative liabilities,
5 Other noncurrent assets -4 -16

Line Item in the Changes in the Fair Value

Consolidated Statement of the Hedging Cost of Hedging
Liabilities of Financial Position Instrument Recognized in Instrument in OCI
where the Hedging OCI
Instrument is included
 Financial assets at fair
value, Other noncurrent
96 assets,Derivative liabilities -85 -23
and Other noncurrent
liabilities

Other noncurrent assets

Derivative liabilities,
467 -467 -234
Other noncurrent
liabilities

Other noncurrent assets,

28 Derivative liabilities -28 -9

sis of OCI items, net of tax, resulting from cash flow hedge accounting.

December 31,2021
Hedging Reserve Cost of Hedging Reserve
-201 -21

-28 -23
-102 -234
-35 -9

28 166
129 200
9
2 -34
-207 54

2020
195
-2428
1309
-924
 Leasing** Marketing Elimination/Others** Total

1153 906 416 438,057

395 - -175725 0
240 48 -45 17,215
159 48 -1936 6,136
0
10032 612 -65793 405,248
4863 142 -31826 292,723
0
- 93 480 171,602
85 16 -183 9,848
300 2 -443 10,008
230 2 -325 564
8 7 2 1,161

es from consumer

Leasing** Marketing Elimination/Others** Total

1150 674 324 286,033

415 - -88854 -2,000
266 79 374 -4,629
155 74 -1118 -11,413
0
9981 659 -54077 347,535
4949 147 -21040 260,446
0
- 109 433 168,831
9 -90 6 9,490
316 1 -420 11,313
 232 5 -340 780
61 8 -32 -4,798

es from consumer

Leasing** Marketing Elimination/Others** Total

1100 961 380 514,362

406 - -229121 0
271 132 139 16,199
140 137 -3061 2,303
0
9901 673 -64595 394,573
5046 136 -31518 296,057
0
- 123 558 167,941
9 -92 2 13,245
316 2 -481 13,484
232 15 -347 1,332
61 15 -2 1,445

Gasul Industrial Others Total

24947 71354 127626 435582

217 9 162828 171029
22 1 14433 15823

20259 57889 52754 283885

258 13 158924 168289
12 - 22234 24629

25745 125314 107178 511921

303 100 156868 167260
5- 14951 16850
 Leasing** Marketing Elimination/Others** Total

1548 906 -912 223222

- - -175397 214835

1565 674 -558 166820

- - -85972 119213

1506 961 -750 301445

- - -227990 212917
es from consumer
Construction - in Total
Progress

P16,872 P261,134

- 422
16,872 261,556
7,009 8,480
-3262 -525
-143 -336
-294 -1442
20,182 267,733
7,164 9,532
-11,200 -122
-10 -283
-235 -1166
15,901 278,026

- 93,193

- 96
- 93,289
- 6,531
- -218
- -7
- -693
- 98,902
- 7,053
- -122
- -4
- 595
- 106,424

P20,182 P168,831
P15,901 P171,602
TOTAL

58768
 38213

6646

103627

TOTAL

60036

53800

6986

120822
Amount Reclassified from Hedging Amount Reclassified from Cost of
Reserve to Profit or Loss Hedging Reserve to Profit or loss

-28 P61

-276 168

16

Amount Reclassified from Hedging Amount Reclassified from Cost of

Reserve to Profit or Loss Hedging Reserve to Profit or loss
 28 166

129 200

9
Line Item in the
Consolidated Statement of
Income Affected by the Reclassification

Other income (expenses) - net

Interest expense and other financing charges, Other

income (expenses) - net

Interest expense and other financing charges

Line Item in theConsolidated Statement of

I ncome Affected by the Reclassification
Other income (expenses) - net

Interest Expense and other financing charges, and Other

income (expenses) - net

Interest Expense and other financing charges

 PETRON CORPORATION AND SUB
RATIO ANALYSIS

LIQUIDITY RATIO
WORKING CAPITAL= Current Assets - Current Liabilities

2021 2020
Current Assets 190,052.00 149,069.00
Current Liabilities 106,455.00 114,461.00 RECOMMENDATION
Working Capital 83,597.00 34,608.00 If the working capital is consistently positive, it implies effi
indicate that the

CURRENT RATIO= Current Assets /Current Liabilities

2021 2020
RECOMMENDATION
Current Assets 190,052.00 149,069.00
Current Liabilities 106,455.00 114,461.00 Continue monitoring the trend in current
Evaluate working capital management practices to ide
Current Ratio 1.79 1.30 payables e

QUICK RATIO= Quick Assets /Current Liabilities

2021 2020
Quick Assets 120,351.00 87,372.00 RECOMMENDATION
Current Liabilities 106,455.00 114,461.00
The increase in the quick ratio is a positive development, ind
Quick Ratio 1.13 0.76 to continue monitoring and managing quick assets to ma

RETURN ON SALES= Net Income/Revenue

2021 2020
RECOMMENDATION
Net Income 6,136 -11,413
Revenue 438,057 286,033
The improvement in ROS is a positive indicator, sugge
continue focusing on profitability, cost management,
adjustment
 The improvement in ROS is a positive indicator, sugge
Return on Sales 0.014 -0.040 continue focusing on profitability, cost management,
adjustment

RETURN ON ASSETS= Net Income/Average Total Assets

2021 2020 AverageRECOMMENDATION

Net Income 6,136 -11,413
Average Total Assets 407,420 349,725 378,573
The improvement in ROA is a positive indica
continue focusing on profitability, opera
Return on Assets 0.016 -0.030 monitoring an

RETURN ON EQUITY= Net Income/Average Total Equity

2021 2020 AverageRECOMMENDATION

Net Income 6,136 -11,413
Average Total Equity 110,913 86,195 98,554
The improvement in ROE is a positive indic
Return on Assets 0.062 -0.116 It's crucial to continue focusing on profita
monitoring and adjustment o

Financial Leverage Ratio

DEBT RATIO= Total Liabilities/Total Assets

2021 2020
RECOMMENDATION
Total Liabilities 296,507.00 263,530.00
Total Assets 407,420.00 349,725.00 The slight reduction in the debt ratio is a positive developm
Debt Ratio 0.73 0.75 effectively, considering the cost of debt, optimal capital st
strategies w

EQUITY RATIO= Total Equity/Total Assets

2021 2020
RECOMMENDATION
Total Equity 110,913.00 86,195.00
Total Assets 407,420.00 349,725.00 The increase in the equity ratio is a positive developmen
on maintaining a healthy equity position, managing
Equity Ratio 0.27 0.25 monitoring and adjustment of finan

DEBT TO EQUITY RATIO= Total Equity/Total Assets

 2021 2020 RECOMMENDATION
Total Liabilities 296,507.00 263,530.00
Total Equity 110,913.00 86,195.00 The increase in the debt-to-equity ratio suggests a shift
0.37 0.33 financial risk and overall stability. Striking the right bala
sustained financial health. Regular monitoring a

PETRON CORPORATION AND SUB

RECOMMENDATION

STATEMENT OF FINANCIAL POSITION

There is a sudden increase in short term loans in year 2021, in that case we recommend
that Petron Corporation should have credit limitations that is aligned with their current
assets or quick assets.

STATEMENT OF COMPREHENSIVE INCOME

In terms of Cost of Goods Sold, Petron Corporation do not have a control over the price of
the petroleums because of some factors affecting on it like supplier from abroad, but they
have a control when it comes to marketing the products. With that, we recommend that
the Petron Corporation must be wise when it comes in their pricing strategy.
 STATEMENT OF CASH FLOW
In terms of Cash and Cash Equivalents, the substantial decrease in cash and cash
equivalents at the end of the year emphasizes the importance of managing liquidity.
Evaluate the adequacy of cash reserves for operational needs..
ON AND SUBSIDIARIES
ANALYSIS

ATION
s consistently positive, it implies efficient management of short-term assets and liabilities. However, if it's too high, it might
indicate that the company is not utilizing its resources optimally.

DATION

nue monitoring the trend in current assets and liabilities to ensure that the company maintains a healthy liquidity position.
capital management practices to identify areas of improvement. This may include optimizing inventory levels, managing receivables and
payables efficiently, and ensuring effective cash flow management.

NDATION

k ratio is a positive development, indicating improved liquidity and the ability to cover short-term liabilities with quick assets. It's essential
ng and managing quick assets to maintain a healthy quick ratio that aligns with the company's financial goals and operational needs.

DATION

t in ROS is a positive indicator, suggesting that the company is generating a positive net income relative to its revenue. It's essential to
on profitability, cost management, and operational efficiency to sustain and enhance ROS over the long term. Regular monitoring and
adjustment of strategies will contribute to ongoing financial success.
t in ROS is a positive indicator, suggesting that the company is generating a positive net income relative to its revenue. It's essential to
on profitability, cost management, and operational efficiency to sustain and enhance ROS over the long term. Regular monitoring and
adjustment of strategies will contribute to ongoing financial success.

RECOMMENDATION

rovement in ROA is a positive indicator, suggesting that the company is effectively utilizing its assets to generate income. It's essential to
tinue focusing on profitability, operational efficiency, and asset management to sustain and enhance ROA over the long term. Regular
monitoring and adjustment of strategies will contribute to ongoing financial success.

RECOMMENDATION

provement in ROE is a positive indicator, suggesting that the company is effectively generating a positive return on shareholders' equity.
ucial to continue focusing on profitability, capital efficiency, and equity growth to sustain and enhance ROE over the long term. Regular
monitoring and adjustment of strategies will contribute to ongoing financial success and shareholder value creation.

NDATION

the debt ratio is a positive development, indicating a move towards a lower reliance on debt for financing. Continue to manage debt
g the cost of debt, optimal capital structure, and long-term financial goals. Regular monitoring and adjustment of debt management
strategies will contribute to financial stability and sustainability.

NDATION

equity ratio is a positive development, indicating a stronger capital structure and reduced reliance on debt financing. Continue to focus
a healthy equity position, managing debt, and aligning the capital structure with the company's long-term financial goals. Regular
monitoring and adjustment of financial strategies will contribute to overall financial strength and sustainability.
 ENDATION

debt-to-equity ratio suggests a shift in the capital structure. It's important to carefully manage this change, considering the impact on
verall stability. Striking the right balance between debt and equity, in alignment with the company's strategic objectives, is crucial for
ancial health. Regular monitoring and adjustment of the capital structure will contribute to long-term financial sustainability.

ON AND SUBSIDIARIES
MENDATION
d cash
iquidity.
Short-term loans 109,196.00
Liabilities for crude oil and petroleum products 42,641.00
Trade and other payables 14,001.00
Lease liabilities - current position 1,335.00
Derivative liabilities 997.00
Income tax payable 302.00
Current portion of long-term debt-net 21,580.00
Total Current Liabilities 190,052.00