Phoenix settles ₧3B in commercial papers

PHOENIX Petroleum Philippines continued to improve its balance sheet after it settled P3 billion in commercial papers (CP) last July 26.

The settlement of CP Series D was funded by a mix of internal funds and financing support from established institutional creditors, the independent oil player said Tuesday.

“The settlement of the CP is an overall reduction in our indebtedness, which improves our leverage and liquidity profile. This puts us in a firmer footing, and positions us well into the second half of the year. We are building on the progress of the past quarters as we prioritize our people’s safety, our customers’ needs, and preservation of resources,” said Phoenix Petroleum President Henry Albert Fadullon.

The CP program of Phoenix was supported by the retail and institutional investors, added Fadullon. “The company is grateful for the confidence given, and having the opportunity to offer such instruments that benefit the investors, and support our growth.”

Amid the challenges brought about by the pandemic, the oil firm posted record-high quarterly volume in the second quarter of the year on the back of the strong performance of its fuels and LPG businesses.

“With this improvement in sales, along with our sustained efforts to prudently manage our costs and capital, we have been able to shorten the cash cycle, and gradually deleverage,” Fadullon added.

Based on the latest market share data of the Department of Energy, Phoenix Petroleum grew its market share in the first quarter of 2021 to 7.8 percent from 7.5 percent as of the end of 2020, and remains the third largest petroleum player in the Philippines.

It noted that fuel demand has improved last April, exceeding precovid levels for the first time since the start of the pandemic.

Phoenix vowed to “provide the best offer to customers, operational excellence, and accelerating growth.” The company has also highlighted its focus on streamlining operations, improved resource management, and efficiency.