Petron remits P375-M dividends to government

Petron Corp., the country’s largest oil refiner, has remitted P375-million worth of dividends to the government through the Philippine National Oil Co. (PNOC).

The amount represents a P0.10/share cash dividend to PNOC, which holds around 3.75 billion Petron shares – equivalent to a 40-percent stake in the company.

Petron chairman Nicasio I. Alcantara turned over the cash dividend to PNOC president and CEO Eduardo V. Mañalac.

Since the oil firm’s privatization in 1994, Petron has remitted nearly P6 billion in cash dividends to PNOC.

Alcantara said the company’s ability to consistently deliver dividends to its shareholders is a result of strategic initiatives and investments over the past few years.

These have been reflected in the company’s performance as it continued to sustain its income growth since 2001. In that year, the company posted a net income of P1.2 billion. By 2005, Petron registered a net income of P6 billion — the highest in the company’s history.

The company also remains the leader in the local oil industry with a market share of nearly 40 percent.

More than a year ago, Petron commissioned its $100-million Clean Air Act-compliant facilities, making it the only oil company capable of producing compliant fuels locally without resorting to product importations.

The company has also earmarked $300 million to construct additional refinery units that will allow it to extract high-value petrochemical streams. These investments, which will be commissioned in 2008, are expected to significantly boost Petron’s income.

"We have always aimed to increase shareholder value by pursuing business initiatives that will sustain long-term growth," Alcantara said.

"Beyond our profitability and market leadership, we continue to adhere to good corporate governance practices that are in line with global standards. We believe this is essential to our success," Alcantara said.

For the second straight year, Petron was named one of the best governed publicly-listed companies in the Philippines by the Institute of Corporate Directors (ICD). The ICD is an international organization that advocates good corporate governance.

The company also continues to be a major partner in national development through its Fuel H.O.P.E. (Helping Filipino children and Youth Overcome Poverty through Education) programs.

Petron currently has more than 5,000 scholars under its Tulong Aral program and has built 13 Petron Schools as of end-2005 in areas where venues for learning are sorely lacking.

Petron recently led a business consortium from the energy sector to build the Tulong Kapwa Gawad-Kalinga (GK)-Energy Village to help rebuild the lives of the Leyte landslide victims.

The GK-Energy Village is a community of 100 homes, a multi-purpose hall, a day-care center, and programs on livelihood, health and nutrition, youth development, and values formation.

"The Tulong Kapwa-GK Energy Village is a good example of how collective action from business, government and civil society can work in addressing some of the most urgent problems in the country," Alcantara said.

About 20 percent of Petron shares are held by about 200,000 investors. The Philippine government, through PNOC, and Saudi Aramco each has a 40-percent stake in Petron.