Recto gives up Petron presidency

MANILA, Philippines - Petron Corp, the country’s biggest oil refiner and retailer, announced yesterday the resignation of Eric O. Recto as president.

In a disclosure to the Philippine Stock Exchange (PSE), Petron said Lubin Nepomuceno has been named president. Prior to his appointment as president, Nepomuceno served as senior vice president and general manager of Petron Corp.

He is also senior vice president of San Miguel Corps. manufacturing.

San Miguel acquired a controlling stake in Petron in 2008 as part of the conglomerate’s diversifying strategy from its core food and drinks business.

Recto was president of the company since October 2008. He is the nephew of former Trade Minister and now top businessman Roberto V. Ongpin, whose business group has a significant stake in San Miguel.

He served as Finance Undersecretary prior to joining Ongpin’s business group such as Philweb Corp.

Recto, however, is not leaving Petron. He will take on the newly created position of vice chairman of the board, the company also said in a disclosure to the local bourse.

Nepomuceno, meanwhile, was appointed as advisor to the board’s compensation and audit committees.

Nepomuceno is expected to continue the plans of the company for the year, ensuring its leadership in the market.

Petron earlier issued up to $500 million in hybrid capital notes.

Proceeds of the fund-raising activity would be used to fund the company’s capital expenditures program, Recto earlier said.

In the first nine months of 2012, Petron reported a consolidated net income of P932 million from P7.6 billion a year earlier, largely on depressed margins in global markets.

The company also said its consolidated net income of P500 million was down 68 percent from P1.56 billion a year earlier.