Phoenix Petroleum posts 23% profit growth

MANILA, Philippines - Phoenix Petroleum Philippines Inc., the country’s only company to be publicly-listed in the era of oil deregulation, has posted a 23-percent income growth to P150 million in 2008 from P122 million in 2007.

In a disclosure to the Philippine Stock Exchange (PSE), Phoenix Petroleum said it realized the income despite the volatility in oil prices that affected the industry during the period.

The company’s total revenues rose to P4.615 billion, 95 percent higher than P2.364 billion in 2007.

Revenue growth was driven by a substantial increase in sales volume of petroleum products and an increase in revenues from fuels service and storage.

 “This was despite lower profit margins and increased business competition amid world oil prices reaching unprecedented levels,” the company said.

A wider distribution network and expanded institutional customer base led to a growth in sales of petroleum products by 97 percent from P2.315 billion to P4.563 billion.

Sales volume of petroleum products and lubricants increased by 66 percent from 68 million liters to 113 million liters.  

The company had 86 operating Phoenix Fuels Life retail service stations by end-2008 compared to 33 in 2007. The company inaugurated its 100th station in February 2009.

Income from fuel service and lease of storage facilities rose from P48 million in 2007 to P52 million in 2008. 

Costs and expenses totaled P4.450 billion, a 97-percent increase against 2007’s P2.253 billion. Purchase costs of petroleum products increased in 2008, along with disproportionate movement of pump prices.

Expenses such as trucking and delivery costs increased as volume grew. Phoenix also expanded its business operations in the areas of Socksargen, Cotabato City and Maguindanao, and did trading activities in Cagayan de Oro City and Cebu City.

Total assets increased to P2.368 billion from P1.192 billion the previous year. Stockholders’ equity increased to P690 million from P566 million. Earnings per share was 0.91, compared to 0.94 in 2007. Book value per share was pegged at 3.76, from 3.93 in 2007. 

Phoenix Petroleum is engaged in the business of trading refined petroleum products, lubricants, chemicals and an array of car care products and accessories.

It also provides services such as depot operation, depot storage, logistics, into-plane and allied services. It was listed on the Philippine Stock Exchange in July 2007, the first petroleum company to do so since the passage of 1998 Downstream Oil Deregulation Act.

In March, the Davao-based company acquired the Bacnotan Industrial Park Corp. (BIPC) to further strengthen its asset and equity position.  

The company is set soon to operate its terminal in Calaca, Batangas with a 50 million-liter storage capacity and a short pier to guaranty the continued supply of fuel to the public.