Phoenix Petroleum nets P2.77-B in 2018

Phoenix Petroleum recorded a net income of P2.77 billion in 2018, driven by record volume from new businesses and sustained strength in its core fuels business.

Revenues grew 99 percent to P88.61 billion in 2018 as volume of petroleum products sold grew by 49 percent year-onyear to an all-time high of 2.75 billion liters.

The company saw accelerating growth in its domestic business driven by fuels and LPG, which delivered a 15 percent volume increase.

As a testament to stronger awareness and patronage of the brand, retail volume grew 5 percent from last year. As of end 2018, 600 stations have been opened nationwide.

Commercial volume grew 13 percent year-on-year and continued to strengthen its position with key wins in fast growth industries such as marine, road transport, and construction.

LPG made tremendous headway in 2018. Total volume surged by 23 percent yearonyear on the back of the continued expansion in Luzon and consistent strength of its Visayas and Mindanao business. Luzon accounted for 10 percent of total LPG volume versus 4 percent pre-acquisition. VisMin meanwhile, continued to outpace industry growth and grew volume by 14 percent.

Further driving the company to new records was the trading operations at PNX Petroleum Singapore, which contributed 758 million liters of volume sold to third parties. This was equivalent to 28 percent of the consolidated volume sales. Of said sales, 44 percent were sold mostly to customers within the fast growing markets in Southeast Asia, laying a strong foundation for Phoenix’s regional expansion.

One year after acquisition, the convenience store retailing business, through Philippine FamilyMart (PFM), delivered significant efficiency improvements for customers through higher fill rates and improved equipment uptime. This was complemented by an expanded and food-centric offer that is anchored on the evolving lifestyle shift towards convenience. Average daily sales increased by 8 percent year-on-year while store operating costs and back office costs were down by 14 percent and 13 percent, respectively, turning store EBITDA positive in 2018 from a loss in 2017.

In addition, post acquisition, PFM has been realizing the synergies within the Udenna Group ecosystem with the first Generation 2 FamilyMart store being opened in August 2018 in Clark Global City. Currently, there are already four FamilyMart kiosks aboard four Starlite ferries. Furthermore, at least three Phoenix stations are slated to have FamilyMart stores on-site.

“Despite industry headwinds in fourth quarter, we worked together to deliver a strong close to 2018. We are positioning ourselves for more success in 2019 and beyond, with a focus on growth, execution, and delivering for our customers and shareholders,” said Phoenix Petroleum Chief Operating Officer Henry Albert Fadullon. /