Oil retailer and refiner Petron Corp. disclosed Friday that its board had made changes in its primary purpose to include power generation and sale of electricity.

The Petron board, which now includes officials of San Miguel Corp., also approved on Friday an increase in capital stock to P25 billion from P10 billion through an issuance of preferred shares.

San Miguel, the beverage and food conglomerate making major acquisitions in other industries, now also owns 34 percent of Manila Electric Co., or Meralco, the country?s biggest power distributor.

San Miguel has an option from a unit of UK-based investment group Ashmore to acquire up to 100 percent in a local subsidiary called SEA Refinery Corp., which owns 50.1 percent of Petron.

Petron meanwhile reported on Friday a 2008 net loss of P3.92 billion, compared with a net income of P6.395 billion in 2007, citing ?extreme volatility? in crude oil prices last year.

In a separate disclosure to the stock exchange, Petron president Eric Recto said 2008 was a ?very abnormal period for refiners, and many in the region reported reduced if not negative margins.?

The world price of crude oil climbed more than 50 percent last year to reach an all-time high of $147 a barrel in July and then fell sharply as the impact of the global financial crisis spread throughout the world?s biggest economies.

?By December, the price of Dubai crude oil averaged only $40 [a barrel]. Domestic prices of refined products fell in line with crude prices ? the result of which had Petron incurring significant inventory losses,? the Petron disclosure said.

Petron said its gross sales grew 27 percent last year to P267.68 billion but this was offset by a 35-percent jump in the cost of goods sold, bringing gross profit to P3.37 billion, down 78 percent from P15.23 billion in 2007.

Petron said it increased its market share slightly to 39.3 percent last year. It said that at end-2008 its service stations nationwide numbered 1,288, the biggest number in the country.

?With oil prices now showing less volatility, we expect a return to profitability. In fact, our January and February performance bears this out,? Recto said.

?We are confident that our partnership with San Miguel Corp. will help us on this road to recovery,? he said. Amy R. Remo; edited by INQUIRER.net