ANG-LED oil refiner Petron Corp. announced on Tuesday that it plans to offer up to P32 billion worth of retail bonds.
In a regulatory filing, the company said its board of directors approved the offering and issuance of up to P25 billion in retail bonds, with an oversubscription option of up to P7 billion.
The retail bonds will be drawn from the bond shelf registration, which was rendered effective by the Securities and Exchange Commission and remains valid until September this year.
For 2024, Petron reported a 16% decline in net income to P8.47 billion amid geopolitical conflicts and weakened demand from China, which affected global oil prices.
The company’s revenues rose by 8% to P867.97 billion from P801.03 billion in 2023, driven by continued growth in its local and international operations, as well as efficiency improvements.
Sales volume increased by 10% to 139.85 million barrels, supported by higher demand and strategic growth initiatives, the company said in a media release on Tuesday.
Its operations in the Philippines and Singapore reported combined sales of 92.49 million barrels, up 16% from the previous year, driven by network expansion and strong marketing efforts.
Retail sales rose by 18%, supported by the country’s largest fuel station network, while commercial sales grew by 6%, driven by a strong presence in the aviation industry.
Meanwhile, Petron said its operations in Malaysia faced challenges due to policy changes in fuel subsidies, while a maintenance-related shutdown at its Port Dickson refinery in the fourth quarter of last year limited production and exports.
The company said global oil prices remained volatile, influenced by geopolitical conflicts in the Middle East and weakened demand from China. While Dubai crude averaged $80 per barrel, prices peaked at $89 in April before dropping to $73 by year-end, putting pressure on regional refining margins.
“These results demonstrate our ability to adapt to market conditions while strengthening our leadership,” said Petron President and Chief Executive Officer Ramon S. Ang.
“With the continued support of our customers, employees, and partners, we remain focused on sustainable growth and contributing to our country’s economic progress,” he added.
Citing data from the Department of Energy, Petron said its market share as an oil company increased to 24.9% in the first half of 2024, up from 23.1% at the end of 2023. The company also maintained its leading position in the liquefied petroleum gas sector, with a 25.5% share. — Sheldeen Joy Talavera
