Petron raising capex to Php11B for 2021


Petron Corporation, the country’s largest oil firm, is allocating Php11.048 billion for its capital expenditures (capex) for this year, 30.3% higher than the Php8.48 billion capex for 2020.

Based on Petron’s final offer for its senior perpetual capital securities, which it disclosed to the Philippine Stock Exchange, the capex is “expected to be funded by a combination of internal cash generation and external financing sources” and “are based on management’s estimates.”

“The Company’s capital expenditures may change as projects are reviewed or contracts entered into and are subject to various factors, including market conditions, the general state of the Philippine and Malaysian economies, the Company’s operating performance and cash flow and the Company’s ability to obtain financing on terms satisfactory to management,” the oil giant added.

Aside from the Philippines, Petron also operates in the Malaysian market.

Among the capital projects the company has for the year is the improvement of its 180,000-barrel per day refinery in Limay, Bataan, with the goal of having a cleaner fuel production process.

Petron reported an Php11.4 billion loss in 2020 due to quarantine restrictions stemming from the COVID-19 pandemic.