Phoenix net income grows by 9% in Q2
PHOENIX Petroleum said it recorded a 9-percent increase in net income in April to June on account of higher volumes.
It said Monday that net income in the second quarter reached P132 million, with revenues higher by 38 percent. EBITDA (earnings before interest, taxes, depreciation, and amortization) surged by 73 percent from the prior quarter to P1.07 billion. Operational expenses per liter were down by 17 percent.
Overall volume grew 32 percent from the prior quarter as the growth of the domestic business picks up pace.
Domestic volume rose 27 percent quarter-on-quarter. Commercial, alongside other B2B segments, strengthened from the prior quarter as select industries, such as manufacturing and trading drove the momentum.
Its LPG business also accelerated on strong canister volume and as industrial LPG returned to growth.
Meanwhile, its overseas business was up 37 percent quarteron-quarter led by the growth in the Vietnam LPG business.
“Our second quarter performance shows that our domestic growth is accelerating and we are solidifying our market positions as evidenced by the recent market share expansion.
Despite challenges, we are able to continue to expand our network via a capex-light model, win new B2B accounts, and keep our costs in line,” Phoenix Petroleum President Henry Albert R. Fadullon said.
The oil firm’s recovery in retail has been slowed down by the continued challenges in mobility with the new spikes in Covid-19 cases, the slower-than-expected rollout of the nationwide vaccination program, and the threat of new Covid variants.
Phoenix Petroleum’s market share in the second quarter stood at 7.8 percent while its LPG market share grew to 7.2 percent. The number of its service stations reached 680 during the period.
The oil company continues to deliver meaningful balance sheet initiatives with the continued debt reduction and successful refinancing of short-term liabilities. The company said these have enhanced liquidity and lengthened its debt maturity profile.
It also settled P3.08 billion in commercial papers, which was partly financed by internally generated funds. Cash generation improved through active working capital management and shorter cash cycles.
“We are confident in our path to long-term, sustainable growth, and will continue to implement high-impact activities to further strengthen the company’s fundamentals.
We are encouraged and inspired to see progress over the past quarters with all the work the team has been putting in. With all these operational gains, we will probably see even more opportunities going forward,” Fadullon said.