Phoenix sets ties with Indonesia’s oil firm

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DENNIS A. UY-led Phoenix Petroleum Philippines, Inc. continues to expand its business within Southeast Asia as it plans to enter into a partnership with a unit of Indonesia’s state-owned oil company for fuel supply marketing.

The independent oil company on Thursday told the stock exchange that its board signed off its plan to team up with the Singaporean unit of PT Pertamina Indonesia.

“The strategic partnership covers supply and potential cooperation in the downstream [oil] business in both Philippine and Indonesia[n] markets,” said Raymond T. Zorrilla, Phoenix’s senior vice president for external affairs.

The Indonesian state firm opened Pertamina International Marketing and Distribution Pte. Ltd. in Singapore just last year in part of its regional expansion. Phoenix also trades and sells refined oil products in the country through Phoenix Petroleum Singapore Pte Ltd. since 2017.

Phoenix said the upcoming tie-up is “part of the company’s growth plans” in the region. It has yet to disclose further details about the deal.

Recently, it listed P3.1 billion worth of commercial papers in the Philippine Dealing and Exchange (PDEx). Proceeds from the 332-day debt papers will be used for its procurement of imported fuels and lubricants.

To recall, the company found it difficult to recover in the second quarter due to credit tightening, which restricted it from replenishing its inventory. In the period, it incurred a net loss of P5 million, reversing its income of P489.27 million a year earlier.

Aside from fuel products retailing, the company is also engaged in logistics services, transport, and convenience store operations.

Shares in Phoenix were unchanged at P11.00 each on Thursday. — Adam J. Ang