Ramon Ang open to return of Petron to government control

MANILA, Philippines — Tycoon Ramon Ang is open to proposals to put Petron Corp. back to government control, which some lawmakers see as among the solutions to high local pump prices.

During a hearing at the House of Representatives on Monday, Ang, president and CEO of Petron, said the government can make an offer “anytime” if it’s really interested in buying back the oil giant.

“Any time, it could be loaned to the Philippine government, they could buy it with over five years to pay. I swear, if the government is looking to buy Petron, they should prepare now,” Ang told legislators in Filipino.

“Just tell me, I will sell it immediately. Tell them to make the valuation immediately, no more nitpicking. Last year, we lost P18 billion. You can check that,” he added.

House lawmakers met on Monday to tackle proposals to address stubbornly high oil prices that’s fanning inflation, which could derail the Philippines’ delicate recovery from the pandemic. Some suggestions include suspending excise taxes on petroleum products and amending the Ramos-era Oil Deregulation Law.

But last month, Bayan Muna Rep. Carlos Isagani Zarate renewed his call to pass House Bill 244 or the proposed Petron Renationalization Act, which has been pending with the House Committee on Energy since July 2019. Zarate is among the principal authors of the bill.

Under the bill, state-owned Philippine National Oil Company (PNOC) would buy a majority stake or 51% of subscribed stocks of Petron upon the first year of its effectivity, if ever the measure is signed into law. PNOC should reacquire 100% full ownership of the company within a period of four years. 

PNOC acquired Esso Philippines — Petron’s old name — at the height of the first oil crisis in 1973 and renamed it Petrophil Corp. In 1994, PNOC and Saudi Aramco signed a stock purchase agreement that gave the latter 40% ownership in Petron. In the same year, 20% of PNOC shares were sold in what was dubbed as the “mother of all initial public offerings (IPOs)” in the Philippines. 

Ang's San Miguel Corp. started managing Petron in 2009.

Oil that Petron purchases only lands in one port, at their refinery in Bataan. There, Petron produces 180,000 barrels daily and supplies 30% of the Philippines' total fuel requirements. Petron registered a 18.60% share in the local market, as of end-June 2021, according to data from the Department of Energy.

In 2020, Petron reported a net loss of P11.4 billion, a turnaround from the preceding year’s P2.3 billion net income, after pandemic restrictions pushed down oil prices amid weak demand from locked-down consumers. Earnings have since recovered amid rallying oil prices as curbs were eased.

Shares in Petron gained 1.86% on Monday to close at P3.83 apiece.