By MYRNA M. VELASCO
Leading oil firm Petron Corporation has spent ₱12.722 billion for loan repayment and crude oil purchases out of the ₱20-billion proceeds it fetched from preferred shares offering last year.
The oil firm has reported to the Philippine Stock Exchange (PSE) that it earmarked ₱6.96 billion for repayment of outstanding short-term loan with Bank of the Philippine Islands (BPI).
It similarly indicated that ₱5.762 billion had been allocated for general corporate purposes, which was mainly used for crude oil procurements.
Further, Petron noted that it used up ₱7.122 billion for the redemption of Series 2A preferred shares at a dividend rate of 6.3 percent per annum and with an optional redemption date on November 3, 2019.
Given such line up of spending, the oil firm emphasized that the total ₱20-billion proceeds from last year’s offering had already been fully disbursed.
To confirm the veracity of the disbursements vis-à-vis the schedules in the prospectus of the offering, Petron had tapped consulting firm KPMG to countercheck details as had been reported to the stock market.
KPMG partner Darwin P. Virocel stipulated that their firm had to “obtain and check the mathematical accuracy of the quarterly progress report from the company.”
Similarly, KPMG had been tasked to “compare the list of all the disbursements in the quarterly progress report with the schedule of planned use of proceeds from the offering as indicated in the final prospectus.”
In turn, the amounts had to be referenced back to the related supporting documents such as invoices, deposit slips, passbook and letter of instructions.
And in cases of discrepancies, the consulting firm stated that it had to obtain written management representation “as to any reallocation on the company’s planned use of proceeds or any change in the work program as disclosed in the prospectus.”
KPMG qualified though that the procedures performed “did not constitute either an audit or review made in accordance with Philippine Standard on Accounting or Philippine Standard on Review Engagements.”