Phoenix Petroleum Philippines Inc. yesterday reported a 7.5-percent year-on-year drop in its first semester net income to P896.8 million from P969.8 million a year ago.
Based on its report, Phoenix chalked up a six-month finance cost of P1.1 billion, up by 69 percent from P659.6 million a year ago.
Also, the fuel distributor saw a 27-percent jump in the combined cost of sales and services, and of selling and administrative expenses.
This happened as Phoenix continued its expansion drive that gained momentum over the past two years.
In 2017, Phoenix acquired Malaysian firm Petronas Dagangan Berhad’s liquefied petroleum gas (LPG) business, which was then focused in southern Philippines.
It also acquired the Japanese convenience store chain FamilyMart, ventured into the asphalt business with PhilAsphalt Development Corp. and Thailand’s Tipco Asphalt. The company also set up a trading operation in Singapore.
In March, Phoenix acquired a 75-percent stake in Origin Energy Vietnam—its first venture into overseas marketing—which was renamed Phoenix Gas Vietnam.
Phoenix said its operating income in the first half revved up by 22 percent to P2.1 billion, thanks to its LPG business as well as growth in fuel retail.
Revenue also picked up by 27 percent to P51.2 billion along with a 28-percent growth in overall volume sold.
The volume of retail sales rose by 17 percent “behind the continued network expansion and improved operating efficiencies.” Phoenix now has 630 stations nationwide .
Phoenix’s revenue from nonfuel retail business—mainly FamilyMart—grew by 5 percent. It’s LPG business expanded by 24 percent.