Phoenix on track to exceed 2016 profit

PHOENIX PETROLEUM Philippines, Inc. expects to exceed last year’s sales and income as 2017 ushered in new revenue sources for the company that has steadily expanded its market share to become one of the country’s top five sellers of oil products.

“Our objective is to grow top line and bottom [ line], not just bottom,” said Henry Albert R. Fadullon, Phoenix Petroleum chief operating officer, in a briefing on Wednesday in Taguig City.

“It will be better than last year. I am not talking about percentages,” he said. “I am talking about absolute numbers.”

In absolute numbers, Phoenix Petroleum in 2016 posted a net income of P1.09 billion, higher by 21% compared with the earlier year’s bottom line as fuel sales increased by double digits after what it called a “solid” growth in volume.

Core earnings from the fuel business more than doubled to P937 million from P416 million because of better margins and sales mix. Fuel sales volume last year grew by 25% and hit the 1.5-billion liter milestone, driven by solid growth in retail and commercial volume.

As of the first half, Mr. Fadullon said Phoenix Petroleum completed 518 retail service stations, with plans to study new locations for the rest of the year.

In 2016, the company built 505 stations nationwide, up from 454 in 2015. Its wholesale market includes companies in the aviation, power, marine and road transport businesses.

FORAY INTO LPG

The company was also cleared by competition regulators on its acquisition of Petronas Energy Philippines, Inc. (PEPI), marking its foray into the liquefied petroleum gas (LPG) market.

Petronas Energy is expected to be a strong growth and value driver for Phoenix Petroleum as it continues to expand its presence in the petroleum industry.

Mr. Fadullon said Petronas Energy had been consolidated into the company beginning August and is expected to contribute to earnings by end-2017.

Petronas Energy is engaged in the LPG business largely in the Visayas and Mindanao. It has allowed Phoenix Petroleum to become a more diversified petroleum company with an enhanced product mix and a more robust platform for growth.

In June, the company opened a new terminal in Consolacion, Cebu, its ninth facility in the country and its largest in the Visayas. The terminal has a capacity of 15 million liters and can store diesel, gasoline, jet fuel, special fuel oil and industrial fuel oil.

It was built to better serve the fuel and lubricant needs of Phoenix’s retail network and commercial customers in shipping, airlines, construction, mass transportation and other industries in the Visayas.

With the new facility, Mr. Fadullon said the company now has three such terminals each in Luzon, Visayas and Mindanao.

“We would like to grow as much as we can,” he said.

The company has earmarked P10 billion for its capital expenditures starting this year and into the next three years. Of that amount, P2 billion will be spent in 2017.

Phoenix Petroleum, which celebrated its 10th stock market listing year in July, claims to be the country’s top independent oil company. Energy department figures lists it as the country’s fifth largest in terms of market share.

On Wednesday, shares in Phoenix Petroleum rose 2.35% or by 30 centavos to close at P13.04 each.