Newly ac­quired LPG firm boosts Phoenix’s bot­tom line

Business World - - CORPORATE NEWS - Vic­tor V. Saulon

IN­DE­PEN­DENT oil com­pany Phoenix Petroleum Philip­pines, Inc.’s net in­come more than dou­bled in the third quar­ter, thanks to its newly ac­quired liq­ue­fied petroleum gas ( LPG) busi­ness.

In a reg­u­la­tory fil­ing, Phoenix Petroleum said its net in­come sig­nif­i­cantly in­creased to P826.54 mil­lion in the third quar­ter, from the P338.62 mil­lion recorded a year ago.

“Phoenix Petroleum’s strong per­for­mance in the third quar­ter shows our com­mit­ment to grow­ing the busi­ness through cus­tomer fo­cus, op­er­a­tional ex­cel­lence, and ac­qui­si­tion of com­ple­men­tary busi­nesses,” said Pres­i­dent and Chief Ex­ec­u­tive Den­nis A. Uy said in a state­ment.

Rev­enues dur­ing the quar­ter hit P13.67 bil­lion, nearly dou­ble year ago’s P6.83 bil­lion.

For the Jan­uary to Septem­ber pe­riod, net in­come reached P1.44 bil­lion, up 59% from the P903.79 mil­lion in the same pe­riod last year.

“The re­sults in­clude the im­pact of the newly ac­quired LPG busi­ness,” Phoenix Petroleum said.

In Au­gust this year, the com­pany com­pleted the ac­qui­si­tion of Petronas En­ergy Philip­pines, Inc., which has since been con­sol­i­dated and re­named Phoenix LPG Philip­pines, Inc.

Ex­clud­ing the non­re­cur­ring gains and ex­penses re­lated to the ac­qui­si­tion of the LPG unit, core in­come stood at P1.08 bil­lion, up by 9% from a year ago.

Rev­enues from the core petroleum busi­ness dur­ing the nine-month pe­riod rose 37% to P32.56 bil­lion be­cause of ro­bust vol­ume growth in re­tail, lu­bri­cants and LPG.

“Third quar­ter vol­ume was par­tic­u­larly strong,” the com­pany said.

As of the Septem­ber, Phoenix Petroleum com­pleted 523 re­tail ser­vice sta­tions while con­tin­u­ing to buy new com­mer­cial di­rect ac­counts and ex­pand­ing mar­ket share within ex­ist­ing ac­counts, in­clud­ing power, ship­ping, lo­gis­tics, trans­porta­tion and man­u­fac­tur­ing.

“Through ac­qui­si­tions, Phoenix Petroleum con­tin­ues to cre­ate growth and op­por­tu­ni­ties in highly at­trac­tive in­dus­tries and mar­kets that are com­ple­men­tary to its core fuel busi­ness and are un­der­pinned by strong macroe­co­nomic fun­da­men­tals,” it said.

On Oct. 30, Phoenix Petroleum signed a me­moran­dum of un­der­stand­ing to ac­quire 100% of Fam­ily Mart con­ve­nience store chain in the coun­try.

“With in­creas­ing dis­pos­able in­come in the coun­try and to­day’s on-the-go con­sumer life­style, growth in con­ve­nience-re­lated spend­ing is ex­pected to ac­cel­er­ate,” it said.

Fam­ily Mart, with 67 stores in Lu­zon, “is an ex­cel­lent plat­form” on which the com­pany “can es­tab­lish and grow its pres­ence in the high-mar­gin, fast grow­ing con­sumer re­tail space, and lever­age on po­ten­tial syn­er­gies with its af­fil­i­ate com­pa­nies,” Phoenix Petroleum said.

The ac­qui­si­tion is sub­ject to the ap­proval of the Philip­pine Com­pe­ti­tion Com­mis­sion. —

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