Oil refiner Petron Corp. said Tuesday majority of its shareholders approved the issuance of preferred shares worth P20 billion.
“The company announces that it has received the written assent of stockholders representing more than a majority of the total outstanding common capital stock of the company in relation to the company’s solicitation for stockholders’ written assent to the proposed issuance by the company of preferred shares of up to P20 billion,” Petron said.
Petron did not disclose the purpose of the preferred shares issuance. The company is set to redeem series A preferred shares issued in 2014 at a redemption price of P1,000 per share on Nov. 4, 2019.
The company said last year it would invest in a continuous catalytic reforming unit that would pave the way for the company to produce petrochemicals such as mixed xylene, toluene and xylene for the export market.
Petron was supposed to complete the basic engineering design study for the CCRU last year for the planned petrochemical facility in the existing 180,000-barrel-per-day refinery complex in Bataan.
Petron posted a 50-percent decline in net income in 2018 to P7.1 billion following a sustained decline in global crude prices that resulted in inventory losses of P10 billion in the last two months of the year.
Operating income reached P18.9 billion in 2018, down 32 percent from P27.6 billion in 2017.
The oil refiner said excluding the one-time item, profits would have ended 21 percent higher at P17 billion.
“It was a challenging year, yet we captured majority of the market and remained the largest and fastest growing oil company in the country. While our long-term fundamentals remain attractive, we will continue to be prepared and responsive to market conditions,” said Petron president and chief executive Ramon Ang.
Consolidated sales rose 28 percent to P557.4 billion from P434.6 billion in 2017.
Petron registered a combined sales volume of 108.5 million barrels last year, slightly higher than 107.8 million barrels sold in 2017.
The company said the strong local sales of gasoline, Jet-A1 and LPG, along with improved operating efficiency. contributed to the increase.
Petron is the Philippines’ largest refiner, providing nearly 40 percent of the country’s fuel requirements through 30 terminals and more than 2,400 service stations nationwide.