MANILA, Philippines?Phoenix Petroleum Philippines Inc. said on Tuesday its board of directors approved the acquisition of the Subic Petroleum Trading and Transport Inc., a move meant to boost the oil firm?s operations.
In a disclosure to the Philippine Stock Exchange, Phoenix also said that its board approved the conduct of due diligence for the proposed acquisition set to start this month. The team that will conduct due diligence of the SPTT will determine the actual valuation of the company, after which Phoenix Petroleum is expected to make an offer.
Located within the premises of the Subic Bay Freeport Zone, Subic Petroleum Trading currently caters to the bunker requirements of major oil companies and independent suppliers in all major ports nationwide.
In the same disclosure, Phoenix Petroleum also said its board has approved the investment of corporate funds to form and incorporate a new company, which would be tasked to acquire and operate a new tanker vessel to ?boost and support the Phoenix Petroleum?s fuel importation, depot expansion and the corresponding increase in fuel capacity of its depot terminals.?
Phoenix Petroleum is expected to subscribe to majority of the shares of this new, yet unnamed company, while another firm, Chelsea Shipping Corp. will serve as a minority shareholder.
?Thus, authority is given to management to determine the corporate structure of said new corporation and its corporate purpose,? Phoenix added.
In a related development, the Phoenix board also approved the declaration of cash dividend for the preferred shares at the rate of 11.5 percent annually and the payment of the cash dividend on March 21, 2011 to all preferred shares subscribers.
The oil firm recently reported that it posted a 140-percent jump in its consolidated core net earnings to P427 million in 2010 from P178 million a year ago, due mainly to a surge in fuel sales volume.
Its consolidated revenue also rose by 152 percent to P14.79 billion last year, from P5.87 billion in 2009.
The company said a substantial portion of its growth could be attributed to the 127-percent increase in fuel sales volume during the year and the 19-percent average increase in fuel prices compared to 2009 levels.