Phoenix Petroleum injects additional investments in 3 subsidiaries

Uy-led Phoenix Petroleum Philippines, Inc. is injecting additional

investments in three subsidiaries that are handling storage and trading of oil commodities.

The company is shelling out additional

million for P-F-L Petroleum Management, Inc. (PPMI), which is the entity managing and supervising the operations and marketing of various kinds of service-oriented companies, including the gasoline stations of Phoenix Petroleum.

“The additional investment shall be utilized to correct capital deficiencies and to support the expansion and establishment of additional stations under its management,” the company said.

Another subsidiary that is getting capital boost will be Subic Petroleum Trading and Transport, Inc. (SPTT) for

million, according to Phoenix Petroleum. The entity is engaged in buying and selling, supply and distribution as well as export and import of all types of petroleum for industrial, marine, aviation and automotive use.

The subsidiary’s primary function to-date is servicing the aviation fuel importation for Phoenix Petroleum clients like the Cebu Pacific airliner of the Gokongwei group.

The Uy-controlled oil firm qualified that it has sited its SPTT facility at the Subic Bay Metropolitan Authority (SBMA) freeport so it can avail of the relatively viable tax incentives.

SPTT has been sourcing fuel from offshore via letter of credit, utilizing the shared credit facilities of Phoenix Petroleum with some of its banks.

“Due to the capital deficiencies on SPTT’s balance sheet, banks increase the interest cost or cause the temporary unavailability of the credit facility to SPTT,” Phoenix Petroleum explained.

Hence, for the additional investment in this subsidiary, it was emphasized that such is intended to remedy capital shortfall, thus “reducing interest costs and increase the availability of credit facilities.”

For its Phoenix Global Mercantile Inc. (PGMI), the additional capital earmarked had been at million. This subsidiary is engaged in the sale and distribution of all kinds of transportation lubricants, fluids and additives and other products for motor vehicles.

Beyond capital shoring up, it was noted that the fresh allotment will also support expansion and distribution network of this company. (MMV)