MANILA, Philippines — Phoenix Petroleum Philippines Inc., the oil firm of Davao-based businessman Dennis Uy, posted a 59 percent jump in profits from January to September 2017 following the significant contribution of its newly-acquired liquefied petroleum gas (LPG) business.
Its net income amounted to P1.437 billion during the period, while core net earnings reached P1.081 billion, higher by nine percent year-on-year.
In terms of sales, third quarter volume was particularly strong, which include the impact of the newly-acquired LPG business.
Revenues from the core petroleum business during the period went up 37 percent to P32.6 billion on the back of robust volume growth in retail, lubricants and LPG.
“Phoenix Petroleum’s strong performance in the third quarter shows our commitment to growing the business through customer focus, operational excellence and acquisition of complementary businesses,” Uy, the company’s president and CEO, said.
As of end-September, the company completed 523 Phoenix retail service stations. It also continued to acquire new commercial direct accounts, while expanding its market share within existing accounts, including power, shipping, logistics, transportation and manufacturing, among others.
Through acquisitions, Phoenix Petroleum continues to create growth and opportunities in highly attractive industries and markets that are complementary to its core fuel business and are underpinned by strong macroeconomic fundamentals.
Last August, the oil firm completed the purchase of Petronas Energy Philippines Inc. (PEPI), which has since been consolidated and renamed Phoenix LPG Philippines Inc. (PLPI), a wholly-owned owned subsidiary of Phoenix Petroleum.
On Oct. 30, the company announced the potential acquisition of Philippine FamilyMart, which holds the area franchise for FamilyMart convenience stores in the Philippines. The transaction is still subject to the approval of the Philippine Competition Commission.
With increasing disposable income in the country and today’s on-the-go consumer lifestyle, growth in convenience-related spending is expected to accelerate, the company said.
“FamilyMart, with 67 stores in Luzon, is an excellent platform on which the company can establish and grow its presence in the high-margin, fast growing consumer retail space, and leverage on potential synergies with its affiliate companies,” it said.