Phoenix Petroleum Philippines Inc. has raised its buyback program to P700 million at most to improve its share value in the local stock market.
“The increase by the board of directors reinforces and supports management’s initiative to exercise its option to purchase undervalued shares in the market,” Phoenix Petroleum vice president for external affairs Raymond Zorilla said.
The oil company’s board of directors raised its share buyback program by another P250 million to P700 million.
The management believes that the oil firm’s shares are undervalued in the local stock market.
This would be the third time that the company’s board increased its share buyback program, Zorilla said.
Phoenix embarked on a buyback program worth up to P250 million in May 2016, as approved by the Securities and Exchange Commission (SEC).
The initial amount is around 3.4 percent of the company’s current market capitalization.
Phoenix is using the funds allocated for the repurchase of shares. It will be taken from its unrestricted retained earnings.
The program will not include funds for the company’s expansion projects or investments, and those allotted for payment of obligations and liabilities.
The board increased the maximum amount of the buyback program from 250 million to P450 million in September.
Phoenix Petroleum’s stock price went up 22.6 percent from P5.00 share in May since it implemented its buyback program.