Petron sets dividend rate for P20 B preferred shares

Petron Corp., the country’s largest oil refiner, has finalized the dividend rate for its P20 billion worth of preferred shares to be issued this month.

Its board of directors has approved the issuance of preferred shares amounting to P15 billion, with an oversubscription option of up to P5 billion.

It said the dividend rate for the Series 3A preferred shares is fixed at 6.8713 percent per annum and 7.1383 percent per year for Series 3B preferred shares.

Series 3A preferred shares may be redeemed after 5 1/2 years or any dividend payment date thereafter, while Series 3B may be redeemed on the seventh anniversary of the listing date.

The said shares will be offered starting tomorrow until June 18, and will be listed on the main board of the Philippine Stock Exchange on June 25.

Proceeds of the offer will be mainly used to redeem the outstanding Series 2A preferred shares of the company amounting to P7.12 billion.

It will also be used for the repayment of outstanding short-term loans from the Bank of the Philippine Islands (BPI) amounting to P6.96 billion. The balance will be used for general corporate purposes such as the purchase of crude oil.

Petron president and chief executive officer Ramon Ang earlier said the company would continue to be responsive to market conditions after a challenging 2018.

The oil firm reported a 50 percent drop in net profit to P7.1 billion last year on the back of massive inventory losses due to the sustained decline in global crude prices in the last two months of the year.