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Petron Corporation has filed its registration statement with the Securities and Exchange Commission in line with its plan to raise up to ₱32 billion from the issuance of bonds.
Philippine Rating Services Corporation (PhilRatings) said it has assigned the highest Issue Credit Rating of PRS Aaa, with a Stable Outlook, for Petron’s proposed bond issuance of ₱25.0 billion, with an oversubscription option of up to ₱7.0 billion.
PhilRatings said it also maintained its Issue Credit Rating of PRS Aaa, with a Stable Outlook, for Petron’s ₱24.8 billion outstanding bonds.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
A Stable Outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.
PhilRatings said the assigned ratings and corresponding Outlook take into account Petron’s sustained strong retail presence and market leadership in the Philippines and Malaysia and its experienced management and synergies with businesses within the San Miguel Group.
Also considered were the Company’s resilient profitability amid headwinds, supported by sustained sales volume growth and the easing inflationary pressures and interest rate cut expectations which are seen to support Philippine economy growth.
According to data from the Department of Energy (DOE) for the first half of 2024, Petron remained as the domestic leader among Philippine oil companies with a market share of 24.9 percent, up from 23.2 percent in the first half of 2023.
The Company was also the market leader in the Liquified Petroleum Gas (LPG) industry with a 24.8 percent market share in the first half of 2024.
In Malaysia, Petron had a retail market share of more than 21 percent as of end-2024, having been in the country’s oil market for around 13 years.
Moving forward, Petron will continue to focus on volume growth, sustainable margins, and operational efficiency improvement.
In 2024, Petron recorded revenues of ₱868.0 billion, up by 8.4 percent from the previous year. Top line expansion was supported by the sustained increase in consolidated sales volume, which went up by 10.2 percent to 139.9 million barrels.
Net income amounted to ₱8.5 billion, lower by 16.2 percent from ₱10.1 billion in 2023, dragged down by the 50.9 percent jump in income tax expense to ₱4.5 billion (given the provision for partial impairment of deferred tax asset).
Petron views its results for the year as a testament to its ability to adapt to market conditions and its resilience amid industry challenges.
PhilRatings likewise echoes the Company’s demonstrated track record of having weathered various dips and peaks over the decades.
PhilRatings also notes the favorable economic outlook for the Philippines amid an easing interest rate environment. Such bodes well for Petron’s growth in the future, as economic growth is a major factor affecting demand for fuel and oil.
