Petron Corp. said its board has authorized the issuance and offering of US dollar- denominated senior notes of up to $500 million.
In a disclosure to the Philippine Stock Exchange, Petron said proceeds will be used for the repayment of debt and for the partial financing of a power plant project in its oil refining facility in Bataan.
Petron is constructing new facilities and structures on its existing power plant in the refinery to replace some of its old generators, increase steam production and expand power generation capacity from 140 megawatts (MW) to 184 MW aimed for completion by the second half of the year.
Petron said the capacity of the power plant will be more than sufficient for its internal consumption with the excess power to be sold to the grid. This will also eliminate the use of fuel oil for power which will be converted instead into high-value products.
Apart from the increased power generation, Petron also invested in the expansion of its polypropylene plant, increasing its capacity from 160,000 MT to 225,000 MT annually, to capitalize on petrochemical margins.
The expansion is expected to be completed this year.
Earlier, Petron announced its recovery amid the pandemic was sustained as sales volume remained on the uptrend in the first nine months of 2021 despite the re-imposition of mobility restrictions.
Consolidated revenues for the period rose 35 percent to P291.57 billion from P216.43 billion while consolidated net income hit P4.99 billion, reversing the P12.6 billion net loss it incurred in 2020.
Consolidated sales reached 59.2 million barrels for the period, which matched 2020’s level of 59.5 million barrels.
As of the first half of 2021, Petron remained as the leading fuel retailer in the country with a market share of 18.60 percent. – Jed Macapagal
