Petron Corp. announced Friday it has set the interest rates for its upcoming P32 billion fixed-rate bond issue, slated for next month.
The oil company’s board previously approved a public offering of up to P25 billion in retail bonds, with an oversubscription option for an additional P7 billion.
These bonds will be issued from a shelf registration approved by the Securities and Exchange Commission, valid until September 2025.
Petron has set the interest rate for its Series G Bonds due in 2030, at 6.5945 percent. The Series H bonds, maturing in 2033, will carry an interest rate of 6.9761 percent, while the Series I bonds, due in 2035, are priced at 7.3896 percent.
The bonds are scheduled to be offered on July 7, 2025. Proceeds from the issuance will be used to repay maturing bonds, settle existing debt, fund short-term loans for working capital, and for general corporate purposes.
PNB Capital and Investment Corp. has been appointed as the sole issue manager for the offering. Joint lead underwriters and joint bookrunners include Bank of Commerce, BDO Capital & Investment Corp., China Bank Capital Corp., First Metro Investment Corporation, Land Bank of the Philippines, Philippine Commercial Capital, Inc., and PNB Capital and Investment Corp.
Petron reported a net income of P4.03 billion for the first quarter of 2025, a slight increase from P3.9 billion in the same period in 2024. This sustained performance comes despite continued volatility in the international market.
“We continue to operate in a volatile and unpredictable market. As we navigate through these setbacks, we remain committed to enhancing our efficiency and strengthening our performance to sustain our market leadership and further our role as a nation-builder,” said Petron president and chief executive officer Ramon Ang.
Petron operates the country’s lone oil refinery with a capacity of 180,000 barrels per day located in Bataan.
The company’s consolidated revenues reached P194.38 billion, marking a 14.6 percent decline from P227.64 billion the previous year. This drop was attributed to lower prices and limited trading volumes from Petron’s Singapore operations.
Despite the overall revenue decline, retail sales in the Philippines saw a 14 percent increase, a testament to the company’s strategy of attracting more motorists through positive customer experiences.
Commercial sales also posted a slight gain, primarily driven by higher jet fuel and LPG sales. However, this growth in domestic sales was offset by lower export sales.
Combined sales volume from Petron’s Philippine and Malaysian operations totaled 27.6 million barrels, a 5 percent decrease from last year.
Petron emphasized its continued financial resilience and strong industry presence amidst market challenges. While operating income was P9.47 billion, lower than the previous year, it significantly exceeded targets.
