Listed PetroEnergy Resources Corp. said Thursday it will raise P1 billion from a stock rights offering to help finance its capital expenditures over the next two years.
“The company expects to raise gross proceeds of approximately P1 billion. The offer price and other details of the offer will be announced as soon as determined,” the company said in a disclosure to the stock exchange.
PetroEnergy said the proceeds of the stock rights offering would be used for “renewable energy projects and for general corporate purposes.”
PetroEnergy vice president Francisco Delfin Jr. said the P1-billion offering would represent the equity portion of the company’s capex program amounting to P6 billion to P7 billion. The balance will be financed by loans.
“Our project lineup requires between P6 billion and P7 billion. Our equity portion for that project is about P1 billion, the balance of that will obviously come from loans for all the projects . It’s the equity side of the P1 billion that we are trying to generate from the capital market by [rights] offering… We hope to finish that may be around third quarter this year,” Delfin said.
The company plans to expand its 36-megawatt Nabas wind project by 14 MW and its 50-MW Tarlac solar facility by 49 MW. It also plans a 10-MW solar plant in Puerto Princesa, Palawan.
The existing Tarlac solar project, completed in 2016 by subsidiary PetroGreen Corp. and EEI Power Corp. is located in an economic zone. The proposed expansion called Tarlac-2 solar power project is set for completion by the first quarter of 2018 at a cost of P2.4 billion.
PetroEnergy is looking at a 33-percent growth in net income this year on the back of higher electricity sales from renewable energy operations.
“Our forecast is upbeat for 2017 since our first half performance already showed a marked improvement in revenues and net income compared to the same period last year. If this efficiency is maintained, we project a 33-percent increase in our net intone at the end of this year,” PetroEnergy president Milagros Reyes said.