MAJORITY of stockholders of Petron Corp. has agreed to the company’s plan to issue preferred shares amounting to up to P20 billion, the company told the stock exchange on Tuesday.
In a disclosure, Petron said it had received the written assent of stockholders “representing more than a majority of the total outstanding common capital stock” of the company.
On March 12, 2019, the board of directors of Petron approved the issuance of 20 million preferred shares under the features provided under its Articles of Incorporation and under such terms as may be determined by its executive committee.
The board’s approval also includes the registration of the preferred shares with the Securities and Exchange Commission and the listing of the shares in the Philippine Stock Exchange.
The approval of the stockholders holding common shares was sought for the listing of the shares at the stock exchange.
Petron is the country’s largest refiner and provides close to 40% of local fuel requirements through its Bataan refinery, 30 terminals, and at least 2,400 service stations nationwide.
Petron reported a 50% drop in its net income in 2018 to P7.1 billion after a “sustained decline” in world crude prices that resulted in inventory losses of P10 billion in November and December last year.
Petron President and Chief Executive Officer Ramon S. Ang had described 2018 as a challenging year, although the company was able to capture majority of the market and remained the largest and fastest growing oil company in the country.
He said that while Petron’s long-term fundamentals remain attractive, the company would continue to be prepared and responsive to market conditions.
Last year, operating income fell 32% to P18.9 billion from P27.6 billion previously. Profits would have been higher by 21% at P17 billion if the one-time item is excluded, the company said.
On Tuesday, shares in Petron slipped 0.31% to close at P6.53 each. — Victor V. Saulon
