INDEPENDENT oil company Phoenix Petroleum Philippines, Inc.’s net income more than doubled in the third quarter, thanks to its newly acquired liquefied petroleum gas (LPG) business.
In a regulatory filing, Phoenix Petroleum said its net income significantly increased to P826.54 million in the third quarter, from the P338.62 million recorded a year ago.
“Phoenix Petroleum’s strong performance in the third quarter shows our commitment to growing the business through customer focus, operational excellence, and acquisition of complementary businesses,” said President and Chief Executive Dennis A. Uy said in a statement.
Revenues during the quarter hit P13.67 billion, nearly double year ago’s P6.83 billion.
For the January to September period, net income reached P1.44 billion, up 59% from the P903.79 million in the same period last year.
“The results include the impact of the newly acquired LPG business,” Phoenix Petroleum said.
In August this year, the company completed the acquisition of Petronas Energy Philippines, Inc., which has since been consolidated and renamed Phoenix LPG Philippines, Inc.
Excluding the nonrecurring gains and expenses related to the acquisition of the LPG unit, core income stood at P1.08 billion, up by 9% from a year ago.
Revenues from the core petroleum business during the nine-month period rose 37% to P32.56 billion because of robust volume growth in retail, lubricants and LPG.
“Third quarter volume was particularly strong,” the company said.
As of the September, Phoenix Petroleum completed 523 retail service stations while continuing to buy new commercial direct accounts and expanding market share within existing accounts, including power, shipping, logistics, transportation and manufacturing.
“Through acquisitions, Phoenix Petroleum continues to create growth and opportunities in highly attractive industries and markets that are complementary to its core fuel business and are underpinned by strong macroeconomic fundamentals,” it said.
On Oct. 30, Phoenix Petroleum signed a memorandum of understanding to acquire 100% of Family Mart convenience store chain in the country.
“With increasing disposable income in the country and today’s on-the-go consumer lifestyle, growth in convenience-related spending is expected to accelerate,” it said.
Family Mart, with 67 stores in Luzon, “is an excellent platform” on which the company “can establish and grow its presence in the high-margin, fast growing consumer retail space, and leverage on potential synergies with its affiliate companies,” Phoenix Petroleum said.
The acquisition is subject to the approval of the Philippine Competition Commission. — Victor V. Saulon