MANILA, Philippines–The sharp drop in fuel prices, as well as shrinking sales volume, pushed down Phoenix Petroleum Philippines Inc.’s net income by 7 percent to P616 million in 2014.
Phoenix Petroleum said in a statement that last year’s price cuts for gasoline totaled P13.29 a liter.
Citing data from the Department of Energy, the company said P15.03 was also slashed from the price of a liter of diesel, and P28.52 for a kilo of liquefied petroleum gas.
The company also said that its sales volume fell by 18 percent, driving revenues down by 20 percent.
Phoenix Petroleum said the fall in volume was seen mainly in nonretail transactions, which was part of a deliberate move to temper low margin sales to wholesalers.
“Despite the drop in (non-retail) sales, volume from retail sales continued to grow in line with the year-on-year expansion of (our) retail network and increase in same-store sales by 10 percent,” it said.
The independent oil firm added 50 filling stations to its distribution network, which now totals 418 stations.
As for sales to commercial clients—such as those engaged in shipping, fishing, mining, electricity and transportation—the volume was described to be one of “continuous growth” throughout 2014.
Phoenix Petroleum said it renewed a long-term supply agreement with Cebu Pacific, covering more than half of the low-cost carrier’s jet fuel needs in Mindanao and parts of the Visayas.