US Dollar Senior Securities Cued for Issuance by Petron

For repayment of debts and general purposes, Petron Corp., the Philippines’ singular crude oil refiner, has signaled the issuance of US dollar-denominated senior perpetual bonds.

“[T]he executive committee of the board of directors authorized the company to issue [the securities], under such terms and conditions as management may determine,” said the company.

Towards the end of the 3rd quarter of 2020, Petron’s liabilities amounted to approximately ₱126 billion. In 2019, the company saw a ₱2.3 billion net income, which was overturned by the impacts of the global pandemic. It suffered an ₱11.4 billion net loss in the previous year.

Petron said the securities could be sold here and in other countries like the United Kingdom, Singapore, Hong Kong, and Japan, subject to laws and regulations.

Regardless, the company affirmed that it saw growth in the 3rd and 4th quarters of the previous year despite experiencing a historic slump in the 2nd quarter, which was also the height of strict government restrictions due to Covid.

The company’s sales volume reached 19 million barrels, amounting to consolidated revenues of ₱69.6 billion, in the 4th quarter of 2020 alone.

These were achieved despite the implementation of very strict localized lockdowns in key cities across the country, like the National Capital Region, and even the “conditional movement control order” in Malaysia where Petron also operates.

Petron was anticipating higher demand and a more stable industry situation as the end of the pandemic is “finally in sight” said the company’s president and CEO Ramon S. Ang in March.

Source: Inquirer