Pilipinas Shell Petroleum Corp. signed a medium-term loan worth P9 billion with Bank of the Philippine Islands to take advantage of lower interest rates and refinance old loans.
Pilipinas Shell disclosed to the Philippine Stock Exchange on Wednesday it signed the agreement with BPI on March 9, adding its “gearing ratio will remain the same.”
Pilipinas Shell, the country’s second biggest oil company, recently reported that it fully utilized the gross proceeds of P1.842 billion from its initial public offering in November 2016.
The company used the bulk of the proceeds or P732.6 million for retail network, P305.3 million for refinery maintenance, P182.3 million for turnaround and upgrade and P135.7 million for supply and distribution network enhancement, working capital and other corporate expenses.
The government required the company to conduct an IPO in compliance with the Oil Deregulation Act of 1998.
Pilipinas Shell owns the country’s second biggest oil refinery with a capacity of 110,000 barrels per day in Batangas.
Its retail network reached 1,014 stations nationwide as of end September last year.
Pilipinas Shell recorded P6.633 billion in profit for the first nine months of 2017, up 4 percent from P6.359 billion year-on-year, despite two months of refinery maintenance shutdown and slightly lower inventory holding gains.
Earnings were bolstered by retail business growth, high V-Power penetration and robust refinery performance.
The company’s earnings performance translates into a 20 percent return on average capital employed, demonstrating the company’s ability to effectively utilize capital to generate superior returns.
Gross revenues reached P124.119 billion, up nine percent from P101.625 billion on year, while expenses rose to P113.946 billion from P92 billion.