Leading oil firm Petron Corporation is scheduling the issuance of senior perpetual capital securities or perpetual bonds that shall be denominated in US dollars.
In a disclosure to the Philippine Stock Exchange (PSE), the oil company indicated that the planned issuance has already secured the approval of its board of directors during their meeting on Thursday (April 8).
Nevertheless, the amount of the securities’ issuance as well as the timeframe of the offer has yet to be firmed up by the management, according to the oil firm.
Company executives have not also disclosed the use of the proceeds of the targeted bond issue, although it is manifest that the oil sector has been among those heavily battered because of the demand slump triggered by the Covid-19 pandemic.
Petron has placed on temporary four-month shutdown the operation of its Limay refinery in Bataan, as it complies with all the requirements of its registration as economic zone locator at the Authority of the Freeport Area of Bataan (AFAB).
Petron President Ramon S. Ang told reporters that the domestic oil sector will still suffer from another year of lackluster demand this 2021, given the more rigid movement restrictions being enforced by the government because of the rising Covid-19 infections and the very gradual pace of vaccinations in the country.
And for the oil firm, in particular, he noted that bottom line outcome may still be on negative territory this year; although it may not be as massive as the P11.4 billion net loss it logged on a full-year basis in 2020.
“We have been working hard to minimize the impact of the pandemic on our business…we look forward to sustaining our recovery as we anticipate higher demand and a more stable industry situation with an end to this crisis finally in sight,” Ang noted.
Given the distressing condition of the industry, the company chief executive said Petron will focus “on further improving its competitiveness,” and that shall be underpinned by the targeted return-to-operation of its refinery by the middle of this year, once its AFAB registration is completed.