MANILA, Philippines – Petron Corp., the country’s largest oil refiner, is planning to issue up to $500 million in hybrid capital notes, the company said in a disclosure to the Philippine Stock Exchange.
Petron priced the offering on Jan. 30 at 7.5 percent. The expected issue date is on Feb. 6, the company also said.
“This is to advise that the company has priced the offering last night, Jan.y 30, 2013, with an issue size of $500 million and expected issue date of Feb. 6, 2013,” Petron said.
Proceeds of the fund-raising activity would be used to fund the company’s capital expenditures program, Petron president Eric Recto earlier said.
In the first nine months of 2012, Petron said its consolidated net income plunged to P932 million from P7.6 billion a year earlier, largely on depressed margins in global markets.
The company also said its consolidated net income of P500 million in the third quarter was down 68 percent from P1.56 billion a year earlier, Petron earlier said in a statement.
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However, the P500-million earnings was a turnaround from the P2.1-billion loss posted in the second quarter.
Officials said Petron is focused on strategic initiatives that will ensure its long-term growth and profitability.
Recto said the company may have more details on its projects lined up for the year after its board of directors meeting in February.
Two years ago, Petron launched an ambitious $2-billion project that would entail putting up more petroleum processing facilities in its refinery.
This planned expansion project would allow Petron to convert by-products into useful products such as petrochemicals, as well as aviation and automobile fuel.
Petron hopes to complete the expansion program in the fourth quarter of 2014, it said.