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Petron to issue perpetual securities

Petron Corp. plans to issue senior perpetual capital securities to pay off its obligations and finance its operations, among others.

It disclosed Thursday a copy of the preliminary offering circular to “the contemplated issuance by the Company of US Dollar-denominated senior perpetual capital securities.”

No amount has been finalized yet.

But the proceeds, said Petron, would be utilized “for the repayment of indebtedness and for general corporate purposes.”

Petron’s Bataan refinery is expected to resume operation in about 4 months from the time it temporarily shut down last February 10. But the oil firm plans to build a Refinery Solid Fired Boiler (RSFBB-3) Phase 3 that would entail an investment of P11 billion.

Dubbed as the “Petron Refinery Special Projects” the main facilities of the project will be two 200 tph Circulating Fluidized Broiler (CFB), two 22megawatt Backpressure Turbine Generators, 500-meter fuel transfer line.

Petron earlier reported a net loss of P11.4 billion last year, as sales dropped  27 percent to 78.6 million barrels compared to its 2019 figures.

The company said sales suffered from a slump in demand, poor refining margins, and collapse in global prices during the period brought about by the pandemic.

Petron President Ramon S. Ang said he is optimistic that demand for fuel products will recover this year.

“We have been working hard to minimize the impact of the pandemic on our business and our performance in the second half of 2020 proves that we are moving in the right direction.

We look forward to sustaining our recovery as we anticipate higher demand and a more stable industry situation with an end to this crisis finally in sight,” he said.

Petron vowed to further improve its competitiveness after it secured approval as a registered enterprise in December 2020 by the Authority of the Freeport Area of Bataan (AFAB).

FAB-registered enterprises are entitled to avail of fiscal incentives under the Special Economic Zone Act of 1995 or Omnibus Investment Code of 1987. This will benefit the company in the form of better timing on the payment of value added taxes, which shall be upon withdrawal of the products from the refinery.

Image credits: Photo from www.petron.com.

Read full article on BusinessMirror

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