Phoenix Petroleum expands to Singapore
Davao-based Phoenix Petroleum Philippines Inc. is expanding into Singapore with the establishment of a trading company to market and trade its products.
The company formed a Singapore-based trading company “for the primary purpose of facilitating and negotiating the supply and trading of the company’s fuel products.”
Phoenix Petroleum will spend about P510 million, or its US dollar equivalent, for the establishment and operation of said Singapore-based trading company. It was cleared by its board to tap banks for the capital investment.
Henry Albert Fadullon, chief operating officer of Phoenix Petroleum, said the company is keen on expanding its retail network, terminals and portfolio beyond its current offerings and services.
“We’ve always been vocal about our aspirations. We want to be a credible and preferred alternative to the majors,” Fadullon said.
“In terms of expansion, we have big plans. We want to make sure that we don’t only offer fuels,” he added.
Its most recent acquisition is the Petronas liquefied petroleum gas (LPG) brand aimed at building a significant presence in the non-fuel petroleum market, which currently accounts for about one percent of the company’s business.
Phoenix Petroleum has entered the LPG retail market with the acquisition of the local unit of Malaysian oil and gas company Petronas Dagangan Berhad (PDB) for $126.1 million or P6.3 billion.
PDB markets the Petronas brand in the country.
The transaction was cleared by the Philippine Competition Commission (PCC) in August.
Apart from the LPG acquisition, Phoenix Petroleum also intends to grow its fuel business by adding more service stations and terminals.
“We have a big pipeline that’s forthcoming to add to the 518 stations we’ve opened,” Fadullon said, declining to give out numbers since these are forward-looking statements.
As of the end of June this year, Phoenix Petroleum had a retail network of 518 service stations.
The oil firm currently has nine terminals nationwide, with three each in Luzon, Visayas and Mindanao. It also now has five LPG refilling plants across the country.