Losses of Dennis Uy’s Phoenix surge 3,200%
MANILA -Phoenix Petroleum Philippines Inc. reported a net loss of P2.066 billion in the first semester of 2023, substantially wider than P62.11 million in the same period a year ago—ballooning by more than 3,200 percent—reflecting the constraints suffered by the oil business of Davao-based businessman Dennis Uy.
In its financial report, Phoenix Petroleum also reported its net loss attributable to parent company stood at P2.061 billion for the period compared to P120.81 million year-on-year.
Revenues slumped 63.8 percent to P27.56 billion from P76.19 billion on the back of lower petroleum sales.
Phoenix Petroleum sold 756 million liters of fuel during the reference period, lower than 1.69 billion liters previously.
“The decline in domestic volume was a result of the implementation of the Third-Party Supply Model (3PS) where a third party supplies our retail requirements directly and the company in return earns service income,” the listed firm said.
It explained by implementing this model, 125 million of fuel were aggregated in the first six months of this year.
“While volume from overseas subsidiaries shrank by 52 percent, the domestic business dropped by 64 percent,” it added.
The average price of petroleum products declined as the price of Dubai, the benchmark crude of Asian refineries, declined by 24 percent to $77.37 per barrel.
Cost and expenses shrank by 62.4 percent to P28.24 billion mainly because the company registered a decline in sales volume.
Furthermore, Phoenix Petroleum incurred a P24-million translation adjustment loss related to its operations in Singapore through subsidiary PNX Petroleum Singapore Pte. Ltd., a reversal from last year’s P308 million in gains.
PNX Petroleum Singapore is the listed firm’s trading and supply arm that facilitates internal fuel requirements and establishes a regional presence in Southeast Asia.
It offers a wide range of refined products to serve all kinds of customers, from retailers to ship-owners, from mining and transport companies to airlines.
Phoenix Petroleum earlier said it is slated to recover following the challenges it endured in the previous year mainly due to the confluence of the coronavirus pandemic and Russia’s invasion of Ukraine.
Despite a challenging 2022, Phoenix Petroleum president Henry Albert Fadullon said, “we continue to power through the setbacks, remaining hopeful and optimistic as we stay on the path towards recovery.”
Fadullon said the firm’s “momentum” was disrupted just as it was seeing the light at the end of the tunnel at the beginning of last year.
“Moving forward, our focus remains on efficiency to further strengthen the business, and deliver value to our stakeholders,” he added.