Dennis Uy’s Phoenix Petroleum nets P2.8 billion in 2018 as revenues surge

PHOENIX Petroleum Philippines, Inc. saw record profits and revenues in 2018. — COMPANY HANDOUT

PHOENIX Petroleum Philippines, Inc. reported an 82% increase in net income in 2018 to P2.77 billion in what it called a banner year after generating record revenues and profit.
In a disclosure to the stock exchange on Tuesday, the company led by Davao businessman Dennis A. Uy said its financial performance last year was driven by record volume from new businesses and sustained strength in its core fuels business.
“Despite industry headwinds in fourth quarter, we worked together to deliver a strong close to 2018. We are positioning ourselves for more success in 2019 and beyond, with a focus on growth, execution, and delivering for our customers and shareholders,” Henry Albert R. Fadullon, Phoenix Petroleum chief operating officer, was quoted as saying.
The company said last year’s performance was despite a “confluence of industry challenges” during the fourth quarter after the sharp decline in crude prices.
Revenues during the year rose 99% to P88.61 billion as sales volume of petroleum products increased by 49% to an all-time high of 2.75 billion liters, the company said.
Phoenix Petroleum said it had seen accelerating growth in its domestic business driven by fuels and liquefied petroleum gas (LPG), which delivered a 15% volume increase.
“As a testament to stronger awareness and patronage of the brand, retail volume grew 5% from last year,” it said.
As of end-2018, the company opened 600 stations nationwide. Commercial volume grew 13% and “continued to strengthen its position with key wins in fast growth industries such as marine, road transport, and construction,” it said.
Total LPG volume climbed by 23% because of the continued expansion in Luzon and consistent strength of its Visayas-Mindanao business.
Luzon made up 10% of the total LPG volume versus 4% pre-acquisition, the company said. VisMin continued to outpace industry growth with a volume growth of 14%, it added.
Meanwhile, its convenience store retailing business Philippine FamilyMart posted “significant efficiency improvements for customers through higher fill rates and improved equipment uptime,” the company said.
“This was complemented by an expanded and food-centric offer that is anchored on the evolving lifestyle shift towards convenience. Average daily sales increased by 8% year on year while store operating costs and back office costs were down by 14% and 13%, respectively, turning store EBITDA (earnings before interest, tax, depreciation and amortization) positive in 2018 from a loss in 2017,” Phoenix Petroleum said.
It added that Philippine FamilyMart had been realizing the synergies within the Udenna Group “ecosystem” with the opening of a store in Clark Global City in August 2018.
“Currently, there are already four FamilyMart kiosks aboard four Starlite ferries. Furthermore, at least three Phoenix stations are slated to have FamilyMart stores on-site,” it said.
On Tuesday, shares in Phoenix Petroleum rose 2.56% to close at P12 each. — Victor V. Saulon