Phoenix Q1 income jumps by over 55%
Phoenix Petroleum Philippines Inc. said its net income shot up by some 55 percent year-on-year in the first quarter as the volume of fuel sales grew by two-thirds.
Net income after tax rose to P438.69 million from P282.31 million in the same three months of 2017.
The Davao-based firm said its first-quarter revenue was more than double at a record P18.08 billion from P8.73 billion previously.
Phoenix said the increase in volume was partly due to major contributions from its new business segments—regional trading and supply arm PNX Petroleum Singapore Pte. Ltd. and Phoenix LPG Philippines Inc.
“Our acquisitions are starting to add value, and we are realizing the synergies across our businesses, from fuels and lubricants to LPG (liquefied petroleum gas), trading and supply, convenience store retailing, and soon, asphalt,” Phoenix president and chief executive Dennis Uy said in a statement.
“We are looking at another banner year as we fully consolidate our new businesses and relentlessly pursue operational excellence,” Uy said.
Also, the increase in sales volume followed the opening of more Phoenix retail stations and the securing of supply deals for key accounts in the industries of power, manufacturing, shipping, transportation, and construction.
Philippine FamilyMart CVS Inc., another recent acquisition, saw store sales rise by 3 percent.
Phoenix Petroleum said it saw a surge in net income despite the increase in finance costs related to the new business acquisitions, and aggressive network expansion, and the increase in cost of sales resulting from higher oil prices.
The company expects to start yet another new business next year as it recently broke ground for its asphalt plant in Batangas for Phoenix Asphalt Philippines Inc.
