Phoenix widens net loss in H1

MANILA, Philippines — Phoenix Petroleum Philippines Inc. of Davao-based businessman Dennis Uy widened its losses in the first semester as lower volume sold during the period slashed revenues by more than half.

Phoenix incurred a net loss of P2.07 billion from January to June, significantly higher that the P62.11 million net loss recorded in the same period in 2022.

During the second quarter alone, Phoenix suffered a net loss of P1.10 billion, a turnaround from the P201 million net income recorded from April to June last year.

Revenues generated during the first half plunged by 64 percent to P27.56 billion from last year’s P76.19 billion.

Phoenix attributed the revenue drop primarily to the 55 percent decrease in total volume sold during the six-month period to 756 million liters from 1.694 billion liters a year ago.

“The decline in domestic volume was a result of the implementation of the third-party supply model where a third party supplies our retail requirements directly and the company in return earns service income,” Phoenix said.

The company saw volume from overseas subsidiaries fell by 52 percent, while the domestic business dropped by 64 percent year-on-year during the six-month period.

Phoenix said the average price of petroleum products was also lower during the first semester as a result of the 24 percent decrease in the price of Dubai crude average.

Phoenix has a total of 598 operating retail service stations as of end-June.

Despite a challenging 2022, Phoenix earlier said it remains optimistic about the current year.

“Our momentum was disrupted just as we were seeing the light at the end of the tunnel in the beginning of last year. But despite 2022 being a challenging period, we continue to power through the setbacks, remaining hopeful and optimistic as we stay on the path towards recovery,” Phoenix president Henry Albert Fadullon earlier said.

“Moving forward, our focus remains on efficiency to further strengthen the business, and deliver value to our stakeholders,” he said.