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LISTED
energy firm Phoenix Petroleum Philippines Inc. (PPPI)
said its net profit in 2007 grew to P122 million from
P74 million a year earlier as it registered a 59-percent
jump in revenues to P2.4 billion.
In a
report to the stock exchange,
Phoenix
said the revenue growth was driven by substantial
increases in sales and distribution of petroleum
products and income from fuel service and storage.
Sales on
trading of petroleum products increased by 58 percent
from P1.47 billion in 2006 to P 2.32 billion in 2007
resulting principally from a wider distribution network,
introduction of new product lines for the Phoenix
Lubricant products and expanded institutional customer
base.
The
number of operating Phoenix Fuels Life retail stations
increased to 33 at the end of December 2007 from 2006.
An additional 31 other stations were in various stages
of completion as of end 2007.
Income
from fuel service and lease of its storage facilities
rose from P27 million in 2006 to P48 million in 2007
primarily due to higher volume storage activities.
Interest
income from money-market placements also increased to
P13 million in 2007 from P1 million in 2006 mainly due
to higher amount of deposit placements following the
issuance of new shares of stock through the parent
firm’s IPO last July.
Phoenix
earlier disclosed plans of creating a new subsidiary
that will focus on the leasing and acquisition of
real-estate properties for its utilization. The
formation of PNX Realty Corp. has already been approved
by its board and will be endorsed shortly to the
stockholders.
“Part of
the planned expansion of the company is the retail
network development which necessarily includes the
expansion of its retail stations as well as storage and
depot facilities in strategic areas in the country,” it
said.
To
expand its retail stations as well as depot and terminal
facilities, it is very important to the company to lease
if not buy real properties in support of the expansion
program, which in turn, PPPI will be subleasing to its
various franchise holders.
Phoenix
became a publicly-listed firm in July where it raised
P284 million in net proceeds from the sale of 29 million
common shares via the stock market. The fund will be
used for capital expenditures and working capital.
Company
chief financial officer Teodoro A. Polinga said earlier
the proceeds will finance their expansion programs in
the next two years. Of the amount, around P150 million
will be for terminal operations and P100 million will go
to its retail business.
To
further sustain expansion, Polinga said the company will
consider tapping the debt market.
“Basically, the IPO proceeds will only be enough for two
years. PPPI has zero debt right now so we might access
the debt market starting this year to help fund our
future requirements,” he added. |
