DENNIS A. UY-LED Phoenix Petroleum Philippines, Inc. has closed the year with a P4.25-billion refinancing program, which included the settlement of P3 billion in short-term commercial papers (STCP) and the redemption of its P1.25-billion preferred shares this month, the company said on Monday.
The firm’s STCP Series C, settled on Dec. 5, was refinanced by a long-term loan. It is eyed to enhance Phoenix Petroleum’s liquidity profile while relieving pressure on immediate cash resources.
Meanwhile, the redemption of the third tranche series A (PNX3A) of its preferred shares, which was announced on Dec. 18, is expected to generate savings on the cost of capital, Phoenix Petroleum said.
“It has been a turbulent year, but we have been making headways in our engagements with creditors, and are ending the year with renewed strength and positivity,” said Phoenix Petroleum President Henry Albert R. Fadullon.
He added that the company was making “significant progress” in ensuring the firm’s long-term viability, so the enterprise could “come out stronger and healthier” after the pandemic.
Phoenix Petroleum’s current financial management program is supported by a capital-light expansion strategy that focused on partnerships and an integrated franchising model that covered its fuel and liquified petroleum gas products, convenience stores, and payments.
Last week, the firm asked for a voluntary trading suspension on its PNX3A preferred shares as Phoenix Petroleum said it needed to address concerns and questions on their settlement.
On Dec. 22, the company said in a regulatory filing that it “substantially complied” with all the terms and conditions of its PNX3A shares offering, and that there were no unpaid dividends.
During the third quarter, Phoenix Petroleum reported a net income of P296 million, a reversal from its P5-million loss in the second. Overall volume sales grew 42% from July to September, following the recovery of its local business amid relaxed quarantine protocols as well as tripled sales in other countries.
Shares in Phoenix Petroleum on Monday shed 3.22% to close at P12.02 apiece. — Angelica Y. Yang