The Philippine Stock Exchange has approved Petron Corporation’s P17 billion follow-on offering of preferred shares which will kick off next week, on September 5, 2024.
In a disclosure to the Philippine Stock Exchange, the San Miguel group’s oil and gas subsidiary said it is offering oup to 17 million Series 4 Preferred Shares (Second Tranche Shares) to be issued in two subseries, Series 4D (PRF4D) and Series 4E (PRF4E) at an offer price of P1,000 per share.
These are perpetual, cumulative, deferrable, non-voting, non-participating, non-convertible, reissuable Philippine Peso-denominated SEC-registered preferred shares coming from the unissued portion of the company’s authorized capital stock.
The firm said this is the second tranche under Petron’s 50 million shelf-registered and shelf-listed Preferred Shares and will consist of a base offering of 13 million Series 4 Preferred Shares and and oversubscription option of up to four billion shares.
In the event of an oversubscription, the Joint Lead Underwriters, in consultation with Petron, reserve the right, but do not have the obligation, to increase the offer size by up to P4 billion.
The net proceeds of the offer shall be used to redeem Petron’s Series 3A Preferred Shares, refinance maturing obligations, and fund general corporate purposes, including the purchase of crude oil inventory.
The offer period will run from September 5, 2024 until September 13, 2024 with the shares slated for listing at the PSE’s Main Board on September 23, 2024.
Despite robust outcome at its top line, the consolidated net income of leading oil player Petron posted a slight downturn in the first half to P6 billion from last year’s P6.14 billion in the same period.
On the company’s operating income, this logged more favorable result with 8.0 percent increase to P17.3 billion from the year-ago level of P16 billion.
As sales had been on escalated pace in the first six months both at domestic base and its offshore market in Malaysia, Petron similarly reported substantial hike of 21 percent in its revenues to P444.5 billion from P367 billion in the same period last year.
“Petron’s sales volumes in the Philippines rose 27 percent to 44.4 million barrels, while volumes from its Malaysian operations grew by nine percent to 24.7 million barrels,” the company noted.
On consolidated basis, the aggregated volume sales for both Malaysia and the Philippines went up 20 percent to 69.1 million barrels versus last year’s 57.6 million barrels.
According to Petron President and CEO Ramon S. Ang, “our prudent and strategic approach continues to pay off amid challenging economic conditions.”
He qualified that in spite of recent uncertainties perturbing oil markets globally, “we were able to retain our edge in vital sectors and enjoy the trust of more and more customers.”
In the retail segment of the market, Petron registered 10 percent rise in sales, indicating that this “remained a key driver of the stellar volume performance through effective marketing programs in the company’s combined service station network of about 2,600 outlets in the Philippines and Malaysia."
Moreover, volume uptake by its industrial accounts had grown nine percent; and that had been precipitated mainly by higher demand of jet fuel as well as liquefied petroleum gas.
“The solid outcome is fueled by the sustained performance of key segments, particularly retail and exports,” the oil firm stressed.
Nevertheless, Petron highlighted that global oil prices have remained volatile - primarily due to the escalating tension in the Middle East; and that somehow impacted its bottom line overall.