Phoenix Petroleum profit up 61% in 9 mos

Publicly listed Phoenix Petroleum Philippines has reported a 61-percent increase in its net income to P416.7 million in the first nine months of the year, driven largely by a 72-percent surge in the volume of products sold during the period.

In a disclosure to the Philippine Stock Exchange, Phoenix said its revenue likewise jumped by 110 percent to P20.68 billion in the first three quarters of 2011 compared to the P9.78 billion it posted in the same period of 2010.

“The growth comes from the expansion of the independent oil company’s retail network and increase in sales from its retail and commercial accounts,” the oil company said.

Phoenix Petroleum has managed to grow its retail network to 198 stations as of end-September 2011, from 161 stations as of end-2010. Of the 198 stations, 142 are in Mindanao, eight are in Visayas and 48 are in Luzon.

However, the company’s third-quarter performance showed a 10-percent decline in its net income to P111 million from the P123 million it registered in the third quarter of 2010.

“The drop (in the third quarter) was due to some supply disruptions during the quarter in refineries in Taiwan and in Singapore, and a number of typhoons hitting the region,” Phoenix Petroleum explained.

Last year, Phoenix Petroleum was estimated to have captured a 2.5-percent market share in the petroleum industry based on volume.

The independent oil player claimed to be the leading independent oil company in Mindanao and is now aggressively pursuing expansion plans in Luzon and Visayas.

To support its growing network, the company has put up several depots in Davao City, Davao del Norte, Aklan, Surigao, Zamboanga and Batangas. The 50-million-liter Batangas depot, located at the Phoenix Petroterminal and Industrial Park, is currently the company’s largest fuel storage terminal.

In August this year, Phoenix Petroleum has concluded a P750-million notes facility agreement to finance the company’s capital expenditure program. BDO Capital and Investment Corp. was tapped as the lead arranger for the said notes facility.