MANILA, Philippines — Phoenix Petroleum of Davao-based businessman Dennis Uy saw its earnings before interest, taxes, depreciation and amortization (EBITDA) drop by nearly a third in the nine months ending September on the back of lower domestic fuel volume in the third quarter.
The company’s year-to-date EBITDA fell 32 percent year-on-year to P1.8 billion.
The independent oil player said domestic fuel volume was sharply lower in the third quarter, with the overseas trading business taking a breather after consecutive quarters of unprecedented growth.
“Recovery in fuels was further set back by lack of scale driven by persistent challenges in liquidity and uncertainties in global markets and economic growth,” the company said.
Phoenix said the LPG business, however, remained a bright spot in its portfolio as it grew 11 percent quarter-on-quarter.
During the third quarter, it reported a nine percent jump in domestic LPG volume from the same period last year and an eight percent rise from the previous quarter.
Phoenix said overseas LPG recovered strongly from a weak second quarter with volume increasing by 16 percent quarter on quarter and three percent year-to-date.
“Both standalone businesses continue to benefit from robust underlying demand in the Philippine and Vietnam markets, adequately supported by working capital,” it said.
Phoenix said it remains focused on strengthening its operations despite a tumultuous year of volatility in global oil markets, recessionary concerns amid record high inflation, peso depreciation, monetary tightening, and muted demand.
The company has been able to expand its network through a capital-light strategy, having opened over 700 stations nationwide to date.
Phoenix is expecting better results going forward as the business transitions to a more sustainable supply chain and logistics model.
It also seeks to be able to scale up again to pre-pandemic levels as it continues to benefit from higher productivity from the structural initiatives and programs implemented over the past years.