PHOENIX Petroleum Philippines Inc. registered a 21-percent increase in net income last year to P1.09 billion mainly on account of higher sales.
Core earnings from the fuel business more than doubled to P937 million, from P416 million, due to better margins and sales mix.
It reported that fuel sales volume grew 25 percent, hitting the 1.5-billion liter milestone in 2016, driven by solid growth in retail and commercial volume. Lubricant sales volume saw an 18-percent growth year-on-year on increased market share.
It was able to put up 51 new retail stations last year, bringing the total number of outlets built to 505 as of end-December 2016.
Revenues were higher by only 2 percent, as lower oil prices year-on-year were offset by higher sales volume. Last November it concluded its sale of its noncore businesses in shipping and industrial park operations to the Udenna Group, the effective parent and majority stockholder of Phoenix Petroleum for total net proceeds of P3 billion.
Proceeds of the sale were used to pay down debt, which improved the company’s leverage, allowing room for further investments in its core business, including potential acquisitions.
Phoenix Petroleum continues to expand its supply-chain assets, with higher tank capacities at its Villanueva (Cagayan de Oro) and Subic terminals in 2016. This year new depots in Tayud, Cebu, and General Santos are expected to be completed in the first and fourth quarters, respectively. Further expansion is also eyed for the Calaca, Batangas, terminal in the third quarter. Based on the latest data released by the Department of Energy, Phoenix Petroleum registered a market share of 6.9 percent as of the first half of 2016, putting it on track to becoming the third-largest oil company in the country by the end of 2017.