Philippines’ Phoenix Petroleum’s third quarter income rises by 45%

Davao-based Phoenix Petroleum Philippines, Inc. posted net income of PHP252.4 million (US$6.1 million) in the third quarter, an increase of 45% over the same period a year ago. Consolidated revenues from fuel sales and service-related gains increased 17% to PHP7.92 billion (US$193 million). Revenue for the nine-month period to September 30 amounted to PHP24.9 billion (US$606 million), up from PHP20.9 billion (US$509 million) in the same period last year.
By the end of September, Phoenix had a total of 275 retail stations in the country, 173 of which are in Mindanao, 21 in the Visayas and 81 in Luzon. The company recently issued corporate notes and raised PHP2.5 billion (US$61 million) to add to its capital. Phoenix said the funds are to be used for expanding its retail station network, as well as to refinance short-term loans. It plans to double its retail stations to 500 across the country.
Phoenix attributes its income growth to the expansion of its retail network, as well as the increase in fuel sales from its retail, commercial and industrial accounts. The company’s newly acquired affiliate, Davao-based Chelsea Shipping Corp., contributed 18.97% of the firm’s net income in the third quarter, and 20.45% in the nine-month period. Chelsea Shipping, which has a fleet of 10 vessels, was acquired by Phoenix in July for PHP1.42 billion (US$34.5 million) to ensure stability of supply for its petroleum business.
The oil firm said its share of the oil industry rose to 5% as of the end of 2011, from 3.2 % a year ago, based on sales volume. (November 16, 2012)