Listed independent oil player Phoenix Petroleum Philippines Inc. has raised as much as P500 million through an issuance of preferred shares, of which proceeds will be used to redeem previously issued shares three years ago.
In a filing with the Philippine Stock Exchange, Phoenix Petroleum disclosed that it concluded on Friday the sale of P500-million worth of perpetual nonconvertible preferred shares via private placement with institutional investors.
Specifically, the company issued five million shares at a price of P100 a share, and with a fixed annual dividend rate of 8.25 percent per annum distributable every quarter.
According to the oil firm, proceeds from the sale will be used to redeem the preferred shares it issued in 2010 with a fixed annual dividend rate of 11.5 percent, which resulted in savings for the company or P16.25 million a year.
“The latest issuance of P500-million perpetual preferred shares by Phoenix Petroleum, which was fully subscribed in the first hour of the first day of the offer, is a testament to the continued confidence of the investing market of the sound business fundamentals of the company,” Jose Ma. de Leon, chief financial officer of PentaCapital Investment Corp., said.
PentaCapital is the issue manager and sole underwriter of the private placement.
After capping the first half of the year with huge profit increase, Phoenix Petroleum saw a single-digit improvement in its nine-month income amid significant increase in its revenue during the period.
Phoenix Petroleum earlier told the local bourse that it saw a 5-percent increase in its net income during the first nine months of the year, earning P541.3 million compared to the P515.7 million recorded during the same period last year.
The oil firm also reported that its consolidated revenue as of September 2013 increased to P31.7 billion, for a 27-percent increased compared to the P24.9 billion registered in the first three quarters of 2012.
The growth, according to the company, was brought about by the 32-percent increase in its fuel sales volume during the year, which was driven primarily by its continuously expanding retail station network.
After ending 2012 with 300 stations, the company’s network reached 358 stations as of September 30, 2013. Of these 358 stations, 208 are based in Mindanao, 45 in Visayas and 105 in Luzon.