Petron : 04 07 17 - Annual Report 2016 (as filed with SEC on April 6, 2017)

CR01991-2017

ANNUAL REPORT PURSUANT TO SECTION 17

OF THE SECURITIES REGULATION CODE AND SECTION 141 OF THE CORPORATION CODE OF THE PHILIPPINES

1. For the fiscal year ended

   Dec 31, 2016

2. SEC Identification Number

   31171

3. BIR Tax Identification No.

   000-168-801

4. Exact name of issuer as specified in its charter

   PETRON CORPORATION

5. Province, country or other jurisdiction of incorporation or organization

   Philippines

6. Industry Classification Code(SEC Use Only)

7. Address of principal office

   San Miguel Head Office Complex, 40 San Miguel Avenue, Mandaluyong City

   Postal Code

   1550

8. Issuer's telephone number, including area code

   (63 2) 886-3888, 884-9200

9. Former name or former address, and former fiscal year, if changed since last report

   N/A

10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA

    Title of Each Class	Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
    COMMON (PCOR)	9,375,104,497
    PREFERRED SERIES 2A (PRF2A)	7,122,320
    PREFERRED SERIES 2B (PRF2B)	2,877,680
    PCOR SERIES A BONDS DUE 2021 (IN MIL PESO)	13,000
    PCOR SERIES B BONDS DUE 2023 (IN MIL PESO)	7,000
    TOTAL DEBT AS OF DEC 31, 2016 (IN MIL PESO-CONSO)	230,073

11. Are any or all of registrant's securities listed on a Stock Exchange?

    ✔ Yes No

    If yes, state the name of such stock exchange and the classes of securities listed therein:

    Philippine Stock Exchange - Common and Preferred Series 2 Shares

12. Check whether the issuer:

13. has filed all reports required to be filed by Section 17 of the SRC and SRC Rule 17.1 thereunder or Section 11 of the RSA and RSA Rule 11(a)-1 thereunder, and Sections 26 and 141 of The Corporation Code of the Philippines during the preceding twelve (12) months (or for such shorter period that the registrant was required to file such reports)

    ✔ Yes No

14. has been subject to such filing requirements for the past ninety (90) days

    ✔ Yes No

15. State the aggregate market value of the voting stock held by non-affiliates of the registrant. The aggregate market value shall be computed by reference to the price at which the stock was sold, or the average bid and asked prices of such stock, as of a specified date within sixty (60) days prior to the date of filing. If a determination as to whether a particular person or entity is an affiliate cannot be made without involving unreasonable effort and expense, the aggregate market value of the common stock held by non-affiliates may be calculated on the basis of assumptions reasonable under the circumstances, provided the assumptions are set forth in this Form

    As of February 28, 2017 (total of 2,242,463,831 common shares at P8.70): P19,509,435,329.70

    APPLICABLE ONLY TO ISSUERS INVOLVED IN INSOLVENCY SUSPENSION OF PAYMENTS PROCEEDINGS DURING THE PRECEDING FIVE YEARS

16. Check whether the issuer has filed all documents and reports required to be filed by Section 17 of the Code subsequent to the distribution of securities under a plan confirmed by a court or the Commission.

    Yes

    ✔ No

    DOCUMENTS INCORPORATED BY REFERENCE

17. If any of the following documents are incorporated by reference, briefly describe them and identify the part of SEC Form 17-A into which the document is incorporated:

18. Any annual report to security holders

    N/A

19. Any information statement filed pursuant to SRC Rule 20

    N/A

20. Any prospectus filed pursuant to SRC Rule 8.1

N/A

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

Petron Corporation PCOR

PSE Disclosure Form 17-1 - Annual Report

References: SRC Rule 17 and

Sections 17.2 and 17.8 of the Revised Disclosure Rules

For the fiscal year ended	Dec 31, 2016
Currency (indicate units, if applicable)	Peso (In Millions)

Balance Sheet

Year Ending	Previous Year Ending
Dec 31, 2016	Dec 31, 2015
Current Assets	125,818	115,725
Total Assets	318,893	294,267
Current Liabilities	158,808	126,579
Total Liabilities	230,073	211,167
Retained Earnings/(Deficit)	42,011	41,712
Stockholders' Equity	88,820	83,100
Stockholders' Equity - Parent	84,491	82,629
Book Value per Share	7.9	7.7

Income Statement

Year Ending	Previous Year Ending
Dec 31, 2016	Dec 31, 2015
Operating Revenue	343,840	360,178
Other Revenue	573	819
Gross Revenue	344,413	360,997
Operating Expense	306,125	328,734
Other Expense	23,910	22,338
Gross Expense	330,035	351,072
Net Income/(Loss) Before Tax	14,378	9,925
Income Tax Expense	3,556	3,655
Net Income/(Loss) After Tax	10,822	6,270
Net Income/(Loss) Attributable to Parent Equity Holder	10,100	5,618
Earnings/(Loss) Per Share (Basic)	0.6	0.15
Earnings/(Loss) Per Share (Diluted)	-	-

Financial Ratios

Formula	Fiscal Year Ended	Previous Fiscal Year
	Dec 31, 2016	Dec 31, 2015
Liquidity Analysis Ratios:
Current Ratio or Working Capital Ratio	Current Assets / Current Liabilities	0.79	0.91
Quick Ratio	(Current Assets - Inventory - Prepayments) / Current Liabilities	0.31	0.4
Solvency Ratio	Total Assets / Total Liabilities	1.39	1.39
Financial Leverage Ratios
Debt Ratio	Total Debt/Total Assets	0.53	0.58
Debt-to-Equity Ratio	Total Debt/Total Stockholders' Equity	1.92	2.07
Interest Coverage	Earnings Before Interest and Taxes (EBIT) / Interest Charges	2.9	2.79
Asset to Equity Ratio	Total Assets / Total Stockholders' Equity	3.59	3.54
Profitability Ratios
Gross Profit Margin	Sales - Cost of Goods Sold or Cost of Service / Sales	0.11	0.09
Net Profit Margin	Net Profit / Sales	0.03	0.02
Return on Assets	Net Income / Total Assets	0.04	0.02
Return on Equity	Net Income / Total Stockholders' Equity	0.13	0.06
Price/Earnings Ratio	Price Per Share / Earnings Per Common Share	16.58	46.6

Other Relevant Information