PHOENIX Petroleum Philippines, Inc. said its board of directors had approved the issuance of commercial papers amounting to up to P10 billion, of which an initial series amounting to P7 billion are to be offered this year, the company told the stock exchange on Thursday.
With the board approval, Phoenix Petroleum said the Securities and Exchange Commission (SEC) had accepted the registration of the company’s commercial papers on Thursday in accordance with the implementing rules and regulations of the Securities Regulation Code.
The company has appointed PNB Capital and Investment Corp. as the sole issue manager for the commercial papers program, as well as the lead underwriter and sole bookrunner for the initial series.
Phoenix Petroleum said it will use 70% of the proceeds or around P4.9 billion for the importation of fuels and lubricants. The rest will be used to repay short-term loans with BDO Unibank, Inc., Asia United Bank Corp., Robinsons Bank Corp., United Coconut Planters Bank, and Development Bank of the Philippines, which are due in December.
The company, led by Dennis A. Uy, has been aggressive in acquiring new businesses. It recently said it was realizing the value of the new acquisitions as it maximizes synergies across its portfolio of fuels, lubricants, liquefied petroleum gas, trading and supply, convenience store retailing, and asphalt.
Phoenix Petroleum reported its net income during the first semester rose 59% to P969.8 million, while revenues jumped by 113% to P40.25 billion. The growth was primarily driven by a 63% increase in total volume sold.
In terms of market share, Phoenix Petroleum said it now holds the third spot, with a 7.12% share, citing a report from the Department of Energy as of the first quarter of 2018. — Victor V. Saulon
