MANILA, Philippines — Independent oil firm Phoenix Petroleum Philippines Inc. is infusing an additional P507.93 million in capital into three wholly owned subsidiaries to expand its depot and terminalling facilities.
Broken down, P55.8 million will go to Subic Petroleum Trading and Transport Inc. (SPTT), P429.63 million to Phoenix Global Mercantile Inc. (PGMI) and P22.5 million to PFL Petroleum Management Inc.
“The capital infusion shall correct capital deficiencies in the subsidiaries as well as for expansion of their respective operations,” Phoenix Petroleum said.
In 2007, Phoenix Petroleum acquired PGMI which is engaged in the importation and distribution of the Emarat brand of lubricants. It also invested in PFL Petroleum which is engaged in the management of PTT retail stations in Luzon.
Meanwhile, it acquired SPPT in 2012 to expand its operations in the North-West and parts of Central Luzon, Bataan, Zambales, Pampanga and Tarlac as well as establish its operations inside the Subic Bay Freeport Zone
Based at the Subic Freeport Zone, Subic Petroleum is engaged in the buying and selling, supply and distribution, import and export, storage and delivery of all types of petroleum for industrial, marine, aviation and automotive use.
SPTT is entitled to tax and duty-free importation of raw materials, capital equipment and household and personal items for use within the Subic Bay Freeport Zone.
Phoenix Petroleum earlier said it set an aggressive expansion plan to strengthen its retail network and to accelerate its growth to become a major oil player in the country.
Apart from expanding further its petroleum retail service stations, the oil firm also plans to carry out its investments in its subsidiaries to put up depot and terminal facilities in strategic locations and complete its chain of logistical support to strengthen its foothold in the industry.
“We are enhancing our network, products, services, and promotions, all in support of our vision to be an indispensable partner to our customers. We are focused on delivering value and operational excellence as we aim to make Phoenix Petroleum a credible alternative to the bigger players,” Phoenix COO Henry Albert Fadullon said.
This year, Phoenix has set a capital spending of up to P4 billion for the expansion program of its traditional business of retailing fuel. This will cover additional stations,
depots, capacities and logistics.