Petron seeks SEC okay for P20-billion retail bond offer to local buyers

In File Photo: A gasoline boy fills up the tank of a customer at a Petron gas station along Osmeña Highway in Manila.

PETRON Corp. on Tuesday said it is seeking permission from the Securities and Exhange Commission (SEC) for its planned public offer of P20-billion retail bonds from the previously approved shelf registration of securities.

“The company today filed an application with the Securities and Exchange Commission for a permit to sell peso-denominated fixed-rate bonds with an aggregate principal amount of P20 billion, to be taken down from the remaining bonds under the shelf registration for peso-denominated fixed-rate bonds worth P40 billion, the registration statement for which was rendered effective by the SEC on October 12, 2016,” the country’s largest oil refiner and distributor said.

Petron earlier 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.

Early this month, Petron reported a 16-percent increase in net income for the first half of the year brought about by higher revenues. It posted P9.5 billion in net income at end-June, from P8.2 billion in the same period last year.

Revenues increased 32 percent to P273.5 billion over the period, from 2017’s P207 billion, driven by sustained sales volumes of its Philippine and Malaysian operations and higher prices of crude oil and finished products. Consolidated sales volumes grew to 54.4 million barrels. Benchmark Dubai crude oil averaged $68 per barrel in the first six months of 2018, 32 percent higher than the record over the same period last year.

The oil firm said it has started accepting the “Pantawid Pasada” Card distributed by the Department of Transportation (DOTr) and Department of Energy (DOE) in 740 service stations nationwide.

Petron said all 740 service stations are visibly marked with a Pantawid Pasada program signage and are located along high-traffic transport routes. Cardholders just need to present their cards to any service-station attendant for proper identification and validation before fueling up with diesel.

“As the leading Filipino-owned oil company, we fully support the government’s move to provide this needed relief in diesel prices to public-utility jeepneys [PUJs] and the riding public,” Petron President and CEO Ramon S. Ang said.

On top of this, PUJ drivers can still use their Petron Super Driver Card (SDC) to earn special bonus points, discounts with merchant partners and instant cash back in terms of peso points for every purchase of fuels, lubricants and Gasul in Petron service stations. The Petron Super Driver Card can be availed of in Petron stations across the country.

SDC cardholders are also entitled to free 24/7 towing and roadside assistance; P10,000 personal accident insurance; and P1,000 medical reimbursement. The SDC, which has nearly 500,000 users nationwide, can be utilized in over 2,100 Petron service stations.

“With our top-quality fuels and loyalty programs such as the Super Driver Card, our customers can be sure they get the most out of every liter in terms of mileage, engine protection and rewards,” Ang said.

In 2003 Petron was the first oil company to introduce a discount scheme for the public-transport sector in selected stations along major thoroughfares in response to rising prices. To give more benefits to the transport sector, the company also launched a rewards program in 2014 to give bonus points to purchase fuels, special discounts, and free personal accident insurance.

Image Credits: Alysa Salen


Lenie Lectura

She studied at Letran College. Named the Best Telecommunications and Energy reporter by Ejap in the past years; also received an award for best feature story.

Latest posts by Lenie Lectura (see all)