Petron plans P20-B retail bond issuance

PETRON CORP. said on Wednesday its board of directors had approved the public offer and issuance of up to P20 billion worth of peso-denominated fixed income retail bonds from the oil company’s previously approved shelf registration of securities.

It appointed BDO Capital & Investment Corp. and BPI Capital Corp. as joint issue managers and, together with China Bank Capital Corp., as joint bookrunners and joint lead underwriters.

Petron said it will soon file appropriate documents with the Securities and Exchange Commission, as well as its listing application with the Philippine Dealing & Exchange Corp.

The company’s board has also approved the issuance of cash dividends for four sets of preferred shareholders at amounts ranging from P15.75 to P17.14575 per share at payment dates in November 2018 and February 2019.

Petron earlier reported a 16% increase in its first-half net income to P9.5 billion from P8.2 billion a year ago as sales volumes in its local and Malaysian markets were sustained while prices of petroleum products during the period came out higher.

In the first half, consolidated revenues rose 32% to P273.5 billion from P207 billion in the same period last year “driven by sustained sales volumes of its Philippine and Malaysian operations and higher prices of crude oil and finished products.”

It said consolidated sales volumes expanded to 54.4 million barrels. Benchmark Dubai crude oil in the first semester averaged $68 per barrel, 32% higher compared with the level in the same period last year.

On Wednesday, shares in the company rose 2.81% to close at P9.15 each. —