Petron Corp., the country’s largest oil refining and marketing company, on Monday said it has resumed its refinery operations in Bataan last month.
“Yes, refinery and petrochemical plants running now,” Petron President Ramon S. Ang said via text message.
The company temporarily closed down its 180,000-barrel-per-day refinery in May and reopened it in October 2020. It again ceased refinery operations last February 10. Ang said commercial operations of its refinery resumed last June 1.
Petron’s Bataan refinery was granted approval as a registered enterprise by the Authority of the Freeport Area of Bataan (AFAB) in December last year. This will benefit the company through better timing of payment and accurate tax base for value added tax.
The company also announced on Monday that it is looking to issue up to P50 billion in fixed rate bonds.
It filed with the Securities and Exchange Commission for the shelf registration of up to P50 billion worth of peso fixed rate bonds to be offered to the public in one or more tranches during the period of shelf registration. Petron said it will initially offer up to P18 billion worth of bonds.
Proceeds will be used to fund the oil firm’s general funding requirements.
The oil firm appointed BDO Capital & Investment Corporation as Sole Issue Manager and the group of BDO Capital & Investment Corporation, China Bank Capital Corporation, Philippine Commercial Capital, Inc., PNB Capital and Investment Corporation, and SB Capital Investment Corporation as joint lead bookrunners and joint lead Underwriters for the first tranche of the bonds.
Petron booked P1.73 billion in net income in the first quarter, a turnaround from the P4.9-billion net loss posted in the same quarter last year and higher than the P1.2 billion net income in the fourth quarter of 2020.
Ang said the oil firm will “continue to deliver good performance unless there is a strict lockdown again.”
Petron Chief Financial Officer Emmanuel Eraña said the oil firm has yet to completely overcome the impact of the pandemic as restrictions continue to be implemented worldwide. He is, however, hopeful of gradual recovery, which is evident in the upward trajectory of volume and income performance of the oil firm in the first quarter.
Petron has set aside P11 billion for its 2021 capital expenditures (capex), higher than the P8.5 billion it allocated last year. The amount covers its ongoing construction of steam generator plants, strategic retail network expansion, and maintenance requirements. Petron has put up 14 new stations in the first quarter with plans to build more for the rest of the year.
This year’s capex will be financed by a combination of internal cash generation and external financing sources.