Phoenix Petroleum net earnings up in 2015

Phoenix Petroleum Philippines Inc.’s net earnings went up 47 percent in 2015 due to higher sales volume and better contributions from subsidiaries.

Phoenix Petroleum’s net income rose to P905.9 million in 2015 from P616.4 million in 2014.

The rise in income was driven by a 27 percent increase in fuel sales volume plus P319 million from the combined net income of the company’s subsidiaries, namely Phoenix Petroterminals and Industrial Park Corp. (PPIPC) and Chelsea Shipping Corp. (CSC).

PPIPC contributed P190 million in income from park operations and sale of land in its industrial park in Calaca, Batangas, while CSC contributed P129 million from its ship chartering operations.

In 2014, both subsidiaries contributed a combined income of P134 million.

Phoenix Petroleum also reported revenues of P30.05 billion, 13 percent lower than the previous year’s P34.73 billion.

This was a result of lower average selling prices as oil prices declined significantly in the world market.

Despite lower revenues, net income to sales ratio (return on sales) improved to three percent from 1.88 percent because of better fuel sales mix in favor of retail, higher efficiency, and savings particularly from fuel trading and supply management operations combined with strong income from the subsidiaries.

In particular, retail sales volume grew 30 percent with the expansion of its retail network to 454 from 418.

On the other hand, sales to commercial accounts, primarily to the power industry, shipping, fishing, mining, aviation, and transportation sectors, registered growth during the year.

Phoenix Petroleum supplies more than 50 percent of Cebu Pacific’s jet fuel requirements and handles all their logistics needs in Mindanao and parts of Visayas. The combined volume for commercial accounts and aviation grew 26 percent.