PHOENIX PETROLEUM Philippines, Inc. on Thursday said it posted record sales volume, revenues and net income in 2017 as its investments through the years began bringing returns.
“Phoenix Petroleum’s momentum in 2017 is a result of its investments over many years in its people, products, and partnerships. We will continue to be opportunistic as we grow the business,” Dennis A. Uy, president and chief executive officer, was quoted as saying in a statement.
Phoenix reported a net income of P1.79 billion for 2017, up 65% growth from the previous year. Last year’s profit included the partial consolidation of the liquefied petroleum gas (LPG) business starting in August 2017.
Excluding non-recurring gains and costs related to the LPG business, core income still hit an all-time high of P1.42 billion, or 30% higher than the previous year.
The company said its “solid” full-year core income growth underscored the strength of its fuels business, in which sales volume increased by 17% to 1.76 billion liters from 1.5 billion liters.
The group reported revenues of P44.426 billion, an increase of 45% over the level in the previous year.
Phoenix attributed last year’s higher sales volume to the addition of new stations, acquisition of new direct commercial accounts across various industries, as well as the consolidation of the LPG business.
As of end-2017, Phoenix had a total of 530 retail service stations.
“In the past 12 months, [Phoenix] completed two acquisitions, marking its foray into the higher margin business of LPG and convenience retailing,” it said. “LPG and convenience stores (CVS) are underpenetrated markets with tremendous domestic growth potential as they benefit from consumers’ growing purchasing power and evolving lifestyle.”
In August last year, the company completed the acquisition of Petronas Energy Philippines, Inc., which it has since renamed to Phoenix LPG Philippines, Inc. The unit owns and operates the Phoenix Super LPG brand.
In January 2018, Phoenix completed the purchase of the Family Mart convenience store brand, which currently has 67 outlets in Luzon.
In September 2017, Phoenix set up PNX Petroleum Singapore Ltd. Pte, further strengthening its portfolio. The unit is expected to enhance the efficiencies of the Phoenix group’s petroleum importation flows as well as provide access to fast-growing markets in Southeast Asia.
Earlier this year, Phoenix announced its joint venture with Thailand-based Tipco Asphalt Public Co. Ltd. and PhilAsphalt (Dev’t) Corp. for the marketing and distribution of asphalt in the Philippines. The move is part of Phoenix’s strategy to complete its petroleum product offerings and to optimize the expected growth in the government’s infrastructure spending.
Phoenix is engaged in trading and marketing of refined petroleum products, including LPG and lubricants, operation of oil depots and storage facilities, hauling and into-plane services, and just recently convenience store retailing.
The company has grown in 15 years from only five stations in Mindanao, making it the fastest-growing oil companies in the country.
Phoenix Petroleum shares jumped by 2.52% to close at P13 each on Thursday. — Victor V. Saulon
