Phoenix Petroleum says first quarter showing signs of recovery

Phoenix Petroleum Philippines, Inc. said there are signs of recovery in the first quarter of this year after economic setbacks in 2022. The independent Philippine-based fuel retailer said its loss narrowed in the first quarter of 2023.

While domestic sales continue to face challenges, its overseas businesses remain as bright spots in the company’s portfolio. Its Singapore-based trading arm had a banner year posting an earnings before interest, taxes, depreciation and amortization (EBITDA) of PHP860 million (USD15.4 million), up 63% compared to the same period last year. The LPG business in Vietnam also posted higher net income after taxes (NIAT) in 2022, up by 2.6% from the previous year. This was driven by branded volume as well as double-digit growth in commercial and industrial segments as Vietnam’s economy recovered strongly in the second half of 2022. The business’ total revenues ultimately sustained positive year-on-year growth as well, notwithstanding the country’s adverse business economic conditions.

Regarding its retail footprint, Phoenix Petroleum said it remains relentless as it converted more gasoline stations into multi-purpose hubs. The company opened the Phoenix Block retail model in more locations, creating multi-dimensional touchpoints and offerings that house three or more Phoenix businesses, such as Phoenix LPG, lubricants, digital transactions, convenience store retailing, and vehicle care services, and other retail outlets. As of 2022, there are five Phoenix Blocks in operation after the first two were inaugurated in 2021. A total of 19 new stations were opened in 2022, bringing the total number of Phoenix outlets to close to 700 by the end of 2022.

Meanwhile, the variety of Phoenix locators also expanded, helping make more stations one-stop-shops. The number increased to 110, with 20 new ones added last year.

Phoenix has also benefited from its business partnerships. Phoenix Asphalt Philippines, Inc, the company’s joint venture with Thailand-based TIPCO Asphalt Public Co., and PhilAsphalt Development Corporation, made headways in 2022, achieving double-digit growth in volumes, resulting in NIAT growth of 39% in 2022. Phoenix continues to seek out value-adding collaborations as it recently announced its intent to explore opportunities with Malaysia’s state-owned oil and gas company PETRONAS.