Phoenix Petroleum Philippines Inc. reported a 46-percent slump in profit to P1.5 billion in 2019 from P2.8 billion in 2018, as financing costs balloon.
Based on Phoenix’s audited full-year financial statement, interest expense on bank
loans and borrowings almost doubled—up 96 percent—to P2.8 billion from P1.5 billion.
The latest figure is also more than thrice the P781 million recorded in 2017.
Further, bank charges exploded 159 percent to P140.1 million from P54.1 million. In 2017, this was only P16.8 million.The company’s balance sheet shows that Phoenix’s interest bearing loans and borrowings ballooned 45 percent to P38.1 billion in 2019 from P26.3 billion in 2018.
Even then, Phoenix enjoys a 10-percent rise in revenues at P97.8 billion from P88.6 billion. The top line registered at only P44.5 billion in 2017.
Similarly, costs and expenses went up by 10 percent to P93.3 billion from P84.6 billion. In 2017, this was recorded at P42.6 billion.
Phoenix has about 650 fuel stations nationwide and has expanded to complementary and related businesses such as liquefied petroleum gas, asphalt, and convenience store retailing.
The company has also been “aggressively widening” its network overseas through its subsidiaries based in Singapore—PNX Petroleum Singapore Pte. Ltd. and PNX Energy International Holdings Pte. Ltd.
JOIN THE IN-DEPTH DISCUSSION
business.inquirer.net