Philippines: Phoenix Petroleum Continues Development

Phoenix Petroleum said it is seeking prospective business partners and investors to help the company become the number one independent oil company. “At this juncture, Phoenix Petroleum is open to engaging prospective business partners who will participate meaningfully in our next stage of growth,” said Phoenix chief financial officer Francis Caluag.

He said the capital infusion from partners will be used for additional working capital needed to support the expansion of the company’s retail distribution network. “Phoenix Petroleum would like to take advantage of the growth opportunities obtainable from building additional depots and retail stations nationwide in line with our objective of being the leading independent station in retail,” Caluag said.

“In strengthening our capital position, we aim to pursue growth only to the extent that can be adequately supported by our balance sheet. We are conscious of gearing as we grow the business and we want to ensure that we have sufficient liquidity for both current operations and for capital spending.”

Phoenix Petroleum Philippines, Inc.’s total revenues increased to P3.609 billion in the first nine months of 2009, or 5 percent higher than the P3.433 billion of the same period in 2008. The increase was driven by a surge in the company’s sales volume – 66 percent in petroleum products and 57 percent in lubricants.

Sales revenues from trading and distribution of petroleum products increased by 4 percent from P3,390 million in 2008 to P 3,514 million in 2009 resulting primarily from a wider distribution network and expanded institutional customer base. Despite the jump in volume sales, increase in absolute revenue was modest due to lower average unit selling prices this year. Current year average selling price per liter is P 27.06 as compared to P 43.24 per liter in 2008, or a 37 percent decline.

Phoenix has 109 operating Phoenix Fuels Life retail service stations as of Sept. 30 compared to 72 in the same period last year. More retail stations will open by year-end. A substantial number of these additional stations have yet to fully realize their potential peak sales volume, having been in operation for less than a year.

Phoenix Petroleum’s net income rose to P589 million during the first three quarters of 2009, compared to P80.3 million for the same period in 2008. The increase was due to the booking of its recent acquisition. Of the increase, P497 million represented non-recurring income due to the booking of the “excess of fair value over acquisition costs,” or negative goodwill arising from Phoenix Petroluem’s purchase of 100% of the capital of BIPC in March.

PetrolWorld 201109