BIZ BUZZ: No dividend joy for Phoenix

It seems that investors of Phoenix Petroleum Philippines Inc., the listed oil company of Davao-based businessman Dennis Uy, will not be able to enjoy their slice of the pie anytime soon.

Phoenix Petroleum, which has seen a financial hemorrhage this year, announced in a disclosure that its board had approved the deferral of dividend payment for preferred shares supposedly to be given on Monday.

The only reason cited for the deferral was “to preserve resources to improve operations, and ensure the long-term sustainability of the business.”

Inquirer reached out to Phoenix Petroleum to shed light on the matter but it has yet to respond to requests for comment.

“It would be reassuring to investors, though, if they could give a timeline as to when they can pay the deferred dividends,” Luis Gerardo Limlingan, head of sales at Regina Capital Development Corp., told the Inquirer in a message.

Phoenix Petroleum has yet to apprise the investing public of new details on dividend payment and only reiterated its commitment to fulfill obligations to its stockholders.

Looking at its latest financial report, the listed firm reported a net loss of P1.1 billion as of end-September against a net profit of P168.8 million in the same nine-month period a year ago.

Revenues during the period dropped by 2.6 percent to P99.9 billion. The company sold 2.2 billion liters of fuel, a decline of 43.8 percent, which the company blamed on rising COVID-19 cases and “the sustained increases in inventory costs and working capital limitations.”

—Jordeene B. Lagare INQ

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