Phoenix Petroleum buying back up to P700 M shares

MANILA, Philippines - Phoenix Petroleum Philippines Inc. is buying back up to P700 million worth of its shares to improve their value at the local stock market.

The oil company’s board of directors recently approved the hike in the share buyback program by another P250 million to P700 million, marking the third time it has increased the amount of its share repurchase plan, Phoenix Petroleum vice president for external affairs Raymond Zorilla said in a text message yesterday.

He said management believes the oil firm’s shares are currently undervalued in the local bourse.

“The increase by the board of directors reinforces and supports management’s initiative to exercise its option to purchase undervalued shares in the market,” he said.

The company embarked on a buyback program worth up to P250 million in May 2016. The initial amount was about 3.4 percent of the company’s current market capitalization.

The Phoenix board decided to increase the maximum amount of the buyback program from P250 million to P450 million in September.

Phoenix Petroleum is using funds allocated for the repurchase of shares from its unrestricted retained earnings.

It also said the program will not involve any funds allotted for the company’s expansion projects or investments, as well as those allotted for payment of obligations and liabilities.

The company’s stocks closed at P6.13 per share yesterday, a 1.13 percent decline from P6.20 on Thursday.

Since the share buyback program commenced, Phoenix Petroleum’s stock price has gone up 22.6 percent from P5 per share on May 31.