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Petron Corporation
8-8

...news

Petron nets P9.5 billion in 6 months on higher petroleum prices

PETRON CORP. reported a 16% increase in net income to P9.5 billion in the first six months of 2018, as sales volumes in the Philippines and Malaysia were sustained while prices of petroleum products rose.

“We intend to fortify our leadership position as we ride on the continued economic growth of the Philippine and Malaysian markets. We continue to integrate our value chain, build up our supply and logistics capabilities, and roll-out more service stations than our competitors,” Petron President and Chief Executive Officer Ramon S. Ang said in a statement on Tuesday.

Petron, the country’s the largest oil refining and marketing company, did not release second quarter figures.

In the first half, consolidated revenues rose 32% to P273.5 billion from P207 billion in the same period last year “driven by sustained sales volumes of its Philippine and Malaysian operations and higher prices of crude oil and finished products.”

Consolidated sales volumes expanded to 54.4 million barrels. Benchmark Dubai crude oil in the first semester averaged $68 per barrel, 32% higher compared with the level in the same period last year.

In the Philippines, Petron said “continued focus on other high-margin products resulted in petrochemicals generating strong sales.” This allowed the company to surpass by 14% last year’s first half volumes. Gasoline and aviation fuel also increased by 8% and 4%, respectively.

In Malaysia, where Petron said it is a “leading player,” sales volumes grew by 7% largely because of stronger retail sales.

“Petron Malaysia now has over 620 service stations and is becoming a significant force in this highly-competitive market. Petron also benefited as the Malaysian ringgit recovered and continued to strengthen during the period,” it said.

Operating income for the semester stood at P15.6 billion, higher by 7% compares with than last year’s P14.6 billion.

“This did not reflect the robust growth in revenues of 32% because the increase in cost of crude outpaced the increase in prices of finished goods,” Petron said, adding that the price movements reduced the company’s gross profit rate to 8.5% from 10.2% a year ago.

Petron, which has a combined refining capacity of 268,000 barrels a day, produces a full range of fuels and petrochemicals. It has over 3,000 service stations where it sells gasoline and diesel.


source: http://www.bworldonline.com/petron-nets-...um-prices/
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8-9

...sige lang

Petron plans P20-B retail bond issuance

PETRON CORP. said on Wednesday its board of directors had approved the public offer and issuance of up to P20 billion worth of peso-denominated fixed income retail bonds from the oil company’s previously approved shelf registration of securities.

It 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.

Petron said it will soon file appropriate documents with the Securities and Exchange Commission, as well as its listing application with the Philippine Dealing & Exchange Corp.

The company’s board has also approved the issuance of cash dividends for four sets of preferred shareholders at amounts ranging from P15.75 to P17.14575 per share at payment dates in November 2018 and February 2019.

Petron earlier reported a 16% increase in its first-half net income to P9.5 billion from P8.2 billion a year ago as sales volumes in its local and Malaysian markets were sustained while prices of petroleum products during the period came out higher.

In the first half, consolidated revenues rose 32% to P273.5 billion from P207 billion in the same period last year “driven by sustained sales volumes of its Philippine and Malaysian operations and higher prices of crude oil and finished products.”

It said consolidated sales volumes expanded to 54.4 million barrels. Benchmark Dubai crude oil in the first semester averaged $68 per barrel, 32% higher compared with the level in the same period last year.


source: http://www.bworldonline.com/petron-plans...-issuance/
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8-22

Expansion of Petron’s refinery complex in Bataan on track for completion in 2022

PETRON Corp. is on track to accomplish an expansion of its refinery complex in Bataan, its top official said.

“We think the newly expanded capacity should be on stream by year 2022,” Petron Chairman Ramon Ang said. “It’s on schedule. From 180,000 barrels, it will become 270,000 a day to 300,000 barrels a day,” said Ang.

The country’s largest oil firm prefers to expand its Bataan refinery because it is faster to implement and less costly compared to building a new one.

The existing refinery currently provides nearly 40 percent of the country’s petroleum requirements through its 180,000 barrel-per-day Bataan refinery, 30 terminals and 2,400 stations nationwide.

Petron is in talks with service providers for its continuous catalytic reforming unit project, which would allow it to produce “a combination of fuels, mostly petrochemicals such as mixed xylene, toluene and benzene.”

Ang said investment to be poured into the expansion project could be recovered in eight to 10 years.

“So far, we continue to enjoy undisturbed possession of the leased properties vital to our operations, pending resolution of the issues we raised in court against the Philippine National Oil Co. and its president. There is nothing to worry about. We remain committed to providing the kind of services to our consumers all over the country,” Ang said.

The leases of both service stations and bulk plants of Petron are set to expire this month.

Petron remains the fastest-growing oil company. Ang said Petron, which supplies more than a third of the country’s petroleum requirements, is well positioned to fuel the government’s infrastructure program.

In the first half of the year, Petron posted a 16-percent increase in net income to P9.5 billion, 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 over the same period last year.

“We intend to fortify our leadership position as we ride on the continued economic growth of the Philippine and Malaysian markets. We continue to integrate our value chain, build up our supply and logistics capabilities and roll out more service stations than our competitors,” Ang said.


source: https://businessmirror.com.ph/expansion-...n-in-2022/
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8-28

...utang

Petron’s P20-B bond issuance gets top credit rating

PETRON CORP. has secured the highest credit rating for its proposed P20-billion fixed rate bond issuance this year, a local debt watcher said.

In a statement over the weekend, Philippine Rating Services Corp. (Philratings) said it has assigned a PRS Aaa credit rating to Petron’s proposed issuance. This is the top rating on Philratings’ credit scale, indicating that the offer has the highest quality with minimal credit risk, while the issuer has an “extremely strong” capacity to meet its financial obligations.

The rating was also given a stable outlook, which means that it is unlikely to change in the next 12 months.

Philratings said it took into account Petron’s growing sales volume and continued expansion, leading market position, sound business strategy, as well as the healthy economic outlook and demand for fuel in coming up with the rating.

Petron’s consolidated sales volume grew by three percent to 54.4-million barrels in the first half of 2018, driven by the single-digit growth in sales volume from both Philippine and Malaysian markets.

Citing date from the Department of Energy, Philratings said Petron is the market leader in the local oil industry, cornering a market share of 27.6%, followed by Pilipinas Shell with 20% and Chevron with seven percent. The company ended the first half with a total of 2,404 service stations, 4.3% higher than what it had in the same period a year ago.

Meanwhile, Petron said it believes to be the third top player in the Malaysian oil market, next to Petronas and Shell Malaysia. The firm increased its operations there by adding more service stations, closing the first semester with 624, 5.2% higher year-on-year.

Petron said it will continue expanding its retail service stations to support the growth in volume production. It is also focusing on selling high-value petroleum products to the most profitable segments in the domestic market to achieve better margins.

The proposed bond offering represents the final tranche of Petron’s three-year shelf registration with the Securities and Exchange Commission of up to P40 billion. The company has already issued the initial P20 billion in 2016, which also carries a PRS Aaa rating.

Petron said it will use the funds raised from the issuance for debt refinancing. It has engaged 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.

The company looks to list the bonds on the Philippine Dealing & Exchange Corp.

Petron grew its net income by 16% to P9.5 billion in the first six months of 2018, driven by a 32% increase in consolidated revenues to P273.5 billion.


source: http://www.bworldonline.com/petrons-p20-...it-rating/
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10-17

Petron completes sale of P20-billion fixed-rate bonds

PETRON CORP. has completed the sale of the P20-billion second tranche of its peso-denominated fixed rate bonds last week, the listed oil refining and distribution company told the stock exchange on Tuesday.

The bond offering, which the company completed on Oct. 12, is the remaining portion of its P40-billion shelf registration with the Securities and Exchange Commission (SEC). The first tranche was offered about two years ago.

The second tranche was divided into P13.2 billion Series C bonds and P6.8 billion Series D bonds. They were listed and traded at the Philippine Dealing & Exchange Corp., for which a certificate of permit to offer securities for sale was issued by the SEC on Oct. 4, 2018.

Petron previously said BDO Capital & Investment Corp. and BPI Capital Corp. had been appointed as joint issue managers and, together with China Bank Capital Corp., as joint bookrunners and joint lead underwriters, including other banks that may be invited to join the group.

When the first tranche was offered in 2016, Petron said the proceeds would be used mainly to refinance existing debt and fund working capital requirements. That year, the company commissioned its $2-billion refinery upgrade, increasing its capability to produce more high-value fuels and petrochemicals.

The first issuance, which was Petron’s first listing at the bond exchange, was twice oversubscribed over the base offer and was priced at the tight end of the marketing range, the company had said.

On Tuesday, shares in the company slipped by 0.60% to close at P8.28 each.

Petron, the country’s largest oil refiner and marketer, earlier reported a 16% increase in its first-half net income to P9.5 billion from P8.2 billion a year ago as sales volumes in its Philippine and Malaysian operations were sustained while prices of petroleum products during the period had come out higher.


source: https://www.bworldonline.com/petron-comp...ate-bonds/
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