Phoenix Petroleum core net income soars to P427M in 2010

MANILA, Philippines - Phoenix Petroleum Philippines Inc., one of the country’s most aggressive independent oil companies, reported yesterday that its consolidated core net earnings from operating sources in 2010 reached P427 million, about 140 percent higher than the P178 million earned in 2009.

In a disclosure to the Philippine Stock Exchange, Phoenix said the increase in earnings could be attributed to higher sales during the period. Consolidated revenues reached P14.79 billion, an increase of 152 percent over P5.87 billion in 2009.

A substantial portion of this growth was brought about by the 127 percent increase in fuel sales volume during the year plus, the 19 percent average increase in fuel selling prices compared to 2009. The surge in fuel sales volume was driven primarily by the company’s continuous expansion of its retail station network.

After ending 2008 with 86 stations, the company’s network reached 120 and 161 stations at the close of 2009 and 2010, respectively.

Of these stations, 123 are based in Mindanao, five in Visayas and 33 in Luzon. Approximately 30 percent are company-owned and 70 percent dealer-owned.

At the same time, sales to commercial accounts, primarily to the airline, shipping, fishing, mining, power and transportation sectors, registered continuous growth during the year.

Core earnings per share for 2010 was P1.43 based on weighted average shares (taking into account the 40 percent stock dividend distributed in Oct. 19, 2010) as compared to 83 centavos in 2009.

The company expects to sustain its growth momentum into 2011-2012 with further investments in retail stations and depots in key trade areas.

Accompanying this growth will be the expansion of its markets for lubricants and other automotive chemicals, as well as building on the initial successes of its Phoenix Fuels Life brand awareness efforts.

The sustained investment in its retail, depot facilities, and logistics infrastructure brought up the company’s total assets to P7.7 billion in 2010, up by 54 percent from 2009.

Total shareholders’ equity was P2.461 billion at the end of 2010 as against P1.53 billion in 2009 as a result of the successful issuance of preferred shares valued at P500 million and supported by the significant increase in core net earnings.

Phoenix Petroleum recorded in 2009 an extraordinary gain of P573.4 million arising from its March 2009 acquisition of Bacnotan Industrial Park Corp. (BIPC).

The one-time gain reflects the purchase of BIPC below its fair market value based on an independent appraisal which is required under prevailing accounting rules on business acquisitions.

Phoenix is a leading domestic independent petroleum company engaged in the storage, hauling and distribution of petroleum products in the Philippine market through its national retail network and to institutional accounts.