MANILA, Philippines — Phoenix Petroleum Philippines Inc. of Davao-based businessman Dennis Uy has postponed the planned pay out of cash dividends to holders of its Series 4 (PNX4) preferred shares to preserve resources.
Phoenix told the local bourse that the previously approved declaration of dividends of PNX4 preferred shares for the fourth quarter is deferred upon recommendation by the management and as approved by its board.
The deferral is part of the company’s strategy “to preserve resources to improve operations, and ensure the long-term sustainability of the business.”
“Notwithstanding, we maintain our commitment to our accountabilities and stakeholders, and will provide the necessary updates as soon as available,” Phoenix said.
Phoenix, in early November, approved the declaration of cash dividends of P18.92 per outstanding PNX4 preferred share from its unrestricted retained earnings for 2021.
The dividends were initially payable on November 22, 2022 to its stockholders of record date November 21, 2022.
Phoenix, however, advised the local bourse in a separate disclosure last month that the payment date would be moved from Nov. 22, 2022 to Dec. 19, 2022 in line with the company’s resource preservation strategies to improve operations.
“The company now informs the public, the Securities and Exchange Commission and the Philippine Stock Exchange that upon recommendation by management and approved by the board, the declaration of dividend of PNX4 preferred shares including its payment is deferred until further notice as part of the strategy to preserve resources to improve operations, and ensure the long-term sustainability of the business,” it said.
Despite a tumultuous year of volatility in global oil markets, recessionary concerns amid record-high inflation, peso depreciation, monetary tightening, and muted demand, Phoenix earlier said that it remains focused on strengthening its operations.
The company said it 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.
“The focus remains on delivering quality products and services to our customers as we recover from the COVID-19 pandemic, and continue to navigate the volatile markets,” Phoenix Petroleum president Bong Fadullon said.