Udenna scouts for partners for shipping, oil businesses

MANILA, Philippines — Udenna Corp., the holding company of Davao-based businessman Dennis Uy, is scouting for strategic partners for its shipping and petroleum businesses to manage resources and support growth.

Udenna, in a statement, said it is inviting potential strategic investors to invest in Chelsea Logistics & Infrastructure Holdings Corp. and Phoenix Petroleum Philippines Inc.

“We are looking for partners who can help us further expand our businesses and promote our brands. We have clearly spelled out our growth strategy which does not simply include selling assets,” Uy said.

“Like all visionary entrepreneurs, we want to go beyond the buy and sell mentality and move toward a more sustainable business that protects and supports the thousands of families that depend on us,” he said.

Both Chelsea and Phoenix Petroleum incurred losses in the first half.

Chelsea, for its part, trimmed its net loss during the period to P1 billion from P1.07 billion a year ago due to improved performance across its business segments.

The company, however, saw a 37 percent increase in revenues during the first semester to P2.91 billion, as revenues from freight business improved by 57 percent year-on-year, while passenger segment saw its topline figures surge by 297 percent amid the easing of mobility restrictions.

Phoenix, on the other hand, incurred a net loss of P62.11 million in the first half, a turnaround from the net profit of P253 million posted in the same period last year.

However, the company saw profitability in the second quarter with a net income of P201 million as it gradually recovered from the loss in the first quarter.

Phoenix has continued to advance resource management initiatives and operational improvements.

It is also developing a new supply model to navigate through the persistent volatility in the markets and foreign exchange.

Meanwhile, Udenna said it is also upbeat about its telecom venture, as a positive bottom line is expected to materialize for Dito Telecommunity Corp. by 2026 or 2027.

Dito’s EBITDA is also on track to be positive as early as the end of 2024, assuming there is no event risk, it said.

The third telco player is likewise bullish as it will soon finish negotiations with a consortium of lenders headed by Bank of China for a $4.1-billion long-term loan to finance the expansion of its network, which must cover 84 percent of the population by 2024.

Dito has reached 12 million subscribers as of August 26, achieving its subscriber base target for the year months in advance.

The debt of Uy’s Udenna has piled up due to its aggressive expansion which accelerated in 2017.

Udenna had investments in around 55 companies by the end of 2017, from less than half as of end-2015.

The Udenna Group’s portfolio includes distribution and retail of finished petroleum products through Phoenix Petroleum, gaming and tourism through PH Resorts, telecommunications through DITO, and shipping and logistics through Chelsea.