SAN MIGUEL Corp. (SMC) expects its businesses to face challenges for the rest of the year due to economic pressures and lower demand, its top official said on Tuesday.
SMC President and Chief Operating Officer Ramon S. Ang said that for the year, the company faces high inflation, fluctuating oil prices, as well as lower demand for power and food.
“Despite [these], because the company is doing everything that we can, our first-quarter [results are] still good,” he said. “If we can at least match the previous year’s performance then we would be very thankful,” Mr. Ang said during the company’s stockholders’ meeting.
Additionally, SMC Chief Financial Officer and Treasurer Ferdinand K. Constantino said that the company is optimistic about the operating environment this year.
“The general outlook is that raw material prices will be more stable this year,” Mr. Constantino said.
“With the pandemic winding down, we are also looking to sustain and further build on the gains we have already made,” Mr. Constantino added.
During the first quarter, SMC reported a consolidated net income of P17.7 billion, up 27% from P13.9 billion in the same period last year, as it saw growth in its business segments. Its top line for the three months hit P346.7 billion, up 9% from P316.77 billion the previous year.
Meanwhile, SMC subsidiary Petron Corp. said in a regulatory filing that it set the dividend rates for its Series 4 follow-on offering at P1,000 per offer share.
Petron is offering up to 12.5-million preferred shares with an oversubscription option of 10 million shares. The company said the dividend rates are set to be issued into three subseries — series A preferred shares at 6.7079%, series B at 6.7972%, and series C at 7.0861%
It expects proceeds of up to P22.34 billion from the offer, assuming the oversubscription option is fully exercised. Proceeds will be used for the partial redemption of certain securities debt refinancing, and the purchase of crude oil.
Petron has also moved its offer period to June 15 to 17 from the initial start on June 14. The company expects to list its preferred shares on the main board of the Philippine Stock Exchange on July 7.
The company tapped China Bank Capital Corp. as the sole issue manager for the offer as well as joint lead underwriter and bookrunner alongside Bank of Commerce, Philippine Commercial Capital, Inc., PNB Capital and Investment Corp., and SB Capital Investment Corp.
On Tuesday, SMC shares declined by 0.57% or 60 centavos to P105 apiece, while Petron shares fell by 5.14% or 18 centavos to P3.32 apiece. — Adrian H. Halili