Petron : 01 09 17 - PSE News Clarification - 1) DENR orders SMCCPC to stop operations of Bataan plant, and 2) Petron share price slides on settlers' complaints

C00093-2017

SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-C

CURRENT REPORT UNDER SECTION 17 OF THE SECURITIES REGULATION CODE AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)

   Jan 9, 2017

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

   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, 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 PHP MILLIONS)	13,000
    PCOR SERIES B BONDS DUE 2023 (IN PHP MILLIONS)	7,000
    TOTAL DEBT AS OF SEPT. 30, 2016 (IN PHP MILLIONS)	201,002

11. Indicate the item numbers reported herein

    Item 9.

    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 4-13 - Clarification of News Reports

    References: SRC Rule 17 (SEC Form 17-C) and Section 4.4 of the Revised Disclosure Rules

    Subject of the Disclosure

    Clarification of news articles: 1) "DENR orders SMCCPC to stop operations of Bataan plant" posted in philSTAR.com on January 9, 2017, and 2) "Petron share price slides on settlers' complaints" posted in Inquirer.net on January 7, 2017.

    Source	philSTAR.com article dated January 9, 2017 and Inquirer.net article dated January 7, 2017
    Subject of News Report	1) "DENR orders SMCCPC to stop operations of Bataan plant" posted in philSTAR.com on January 9, 2017, and 2) "Petron share price slides on settlers' complaints" posted in Inquirer.net on January 7, 2017.
    Date of Publication	Jan 9, 2017

    Clarification of News Report

    We write in response to your request for clarification on the following news articles: "MANILA, Philippines - The Department of Environment and Natural Resources (DENR) has ordered SMC Consolidated Power Corp. (SMCCPC) to stop any activity inside its coal-fired power plant in Limay, Bataan in the wake of an ash spill that has reportedly caused several residents to fall ill. Through its Environmental Management Bureau (EMB)-Central Luzon office, the DENR also directed the nearby Petron Bataan Refinery (PBR) to 'stop from dumping newly-generated bottom ash' in the area while the ash spill incident is being investigated. The two directives, both dated Jan. 6, were issued by regional director Lormelyn Claudio of EMB Region 3, which is based in San Fernando City, Pampanga. . . . . The EMB said it was inclined to issue a new order against PBR 'considering the most recent reports and information on the alleged skin diseases caused by the dumping of bottom ash at (SMCCPC's) facility.' . . . ." "Shares of Petron Corporation were battered on the Philippine Stock Exchange Friday after Environment Secretary Gina Lopez was quoted as saying she would order a stop to the operations of the petroleum giant's power plant in Limay, Bataan, due to complaints lodged by the local mayor-accusations that the company denies. . . . ." We wish to confirm that the Department of Environment and Natural Resources, Environmental Management Bureau, Region 3 ("DENR-EMB") had issued a notice addressed to the Petron Bataan Refinery (the "Petron Refinery") dated December 28, 2016, as reported in the aforementioned news article. We apprise the Exchange that Petron Refinery has complied with the directives of the DENR-EMB contained in the said notice and measures have been put in place for the proper handling of the ash resulting from its operation. Further, the DENR-EMB has scheduled a technical conference regarding this matter today, January 9, 2017. The Company will be represented thereat and shall explain its position on the points raised by the DENR-EMB in the subject notice.

    Other Relevant Information

    Please see attached letter dated January 9, 2017.

12. "DENR orders SMCCPC to stop operations of Bataan plant" posted in philSTAR.com on January 9, 2017, which reported in part that:

13. "Petron share price slides on settlers' complaints" posted in Inqurier.net on January 7, 2017, which reported in part that:

Filed on behalf by:

Name	Joel Angelo Cruz
Designation	Vice President - General Counsel and Corp. Sec.

January 9, 2017

PHILIPPINE STOCK EXCHANGE, INC.

3rd Floor, Philippine Stock Exchange Center Ayala Triangle, Ayala Avenue

Makati City

Attention: Mr. Jose Valeriano B. Zuño III

OIC, Head, Disclosure Department

Gentlemen:

We write in response to your request for clarification on the following news articles:

1. "DENR orders SMCCPC to stop operations of Bataan plant" posted in philSTAR.com on January 9, 2017, which reported in part that:

   "MANILA, Philippines - The Department of Environment and Natural Resources (DENR) has ordered SMC Consolidated Power Corp. (SMCCPC) to stop any activity inside its coal-fired power plant in Limay, Bataan in the wake of an ash spill that has reportedly caused several residents to fall ill.

   Through its Environmental Management Bureau (EMB)-Central Luzon office, the DENR also directed the nearby Petron Bataan Refinery (PBR) to 'stop from dumping newly-generated bottom ash' in the area while the ash spill incident is being investigated.

   The two directives, both dated Jan. 6, were issued by regional director Lormelyn Claudio of EMB Region 3, which is based in San Fernando City, Pampanga.

   . . . .

   The EMB said it was inclined to issue a new order against PBR 'considering the most recent reports and information on the alleged skin diseases caused by the dumping of bottom ash at (SMCCPC's) facility.'

   . . . ."

2. "Petron share price slides on settlers' complaints" posted in Inqurier.net on January 7, 2017, which reported in part that:

"Shares of Petron Corporation were battered on the Philippine Stock Exchange Friday after Environment Secretary Gina Lopez was quoted as saying she would order a stop to the operations of the petroleum giant's power plant in Limay, Bataan, due to complaints lodged by the local mayor-accusations that the company denies.

. . . ."

We wish to confirm that the Department of Environment and Natural Resources, Environmental Management Bureau, Region 3 ("DENR-EMB") had issued a notice addressed to the Petron Bataan Refinery (the "Petron Refinery") dated December 28, 2016, as reported in the aforementioned news article. We apprise the Exchange that Petron Refinery has complied with the directives of the DENR-EMB contained in the said notice and measures have been put in place for the proper handling of the ash resulting from its operation.

Further, the DENR-EMB has scheduled a technical conference regarding this matter today, January 9, 2017. The Company will be represented thereat and shall explain its position on the points raised by the DENR-EMB in the subject notice.

Very truly yours,

JOEL ANGELO C. CRUZ

VP - General Counsel & Corporate Secretary