Oil refiner and retailer Pilipinas Shell Petroleum Corp. said Wednesday it fully utilized the gross proceeds worth P1.842 billion from its initial public offering in November 2016.
“The net IPO proceeds have been fully utilized,” Pilipinas Shell said in a disclosure to the stock exchange.
The company said it used the bulk of the proceeds for the retail network and offerings growth amounting to P732.6 million, followed by refinery maintenance, turnaround and upgrade at P305.3 million, supply and distribution network enhancement at P182.3 million and working capital and other corporate expenses at P135.7 million.
The government required the company to undertake an IPO in compliance with the Oil Deregulation Act of 1998 which mandates oil refiners to list their shares at the stock market.
Pilipinas Shell owns the country’s second biggest oil refinery with a capacity of 110,000 barrels per day in Batangas province.
The company’s retail network reached 1,014 retail stations nationwide as of end-September 2017.
Pilipinas Shell recorded P6.633 billion in net profit in January to September last year, up 4 percent from P6.359 billion a year earlier.
Earnings were bolstered by retail business growth, high V-Power penetration and robust refinery performance, it said.
The company’s earnings performance translated into a 20-percent return on average capital employed, demonstrating the company’s ability to effectively utilize capital to generate superior returns.