Phoenix Petroleum logs P95-M net loss

Published November 15, 2020, 5:00 AM by Myrna M. Velasco
https://mb.com.ph/2020/11/15/phoenix-petroleum-logs-p95-m-net-loss/

Despite increasing sales volume, the financial performance of Uy-led Phoenix Petroleum Philippines Inc. still ended in a net loss of P95 million in the last nine months, which was a reverse of the P918.3 million income posted in the same period last year.

In the third quarter, the company’s financial result had been better placed with P296 million net income, considerably a twist of fate from the marginal P5.0 million loss it registered in the second quarter.

The oil firm emphasized that its improved profitability in June-September period was achieved because of “relentless focus on cost discipline along with a more stable oil price environment.”

Phoenix Petroleum noted that third quarter was so far its rebound period, with sales volume increasing by 42-percent vis-à-vis last year’s outcome. The company said that was propelled mainly by the tripling of its product demand overseas; while the domestic business kick-started its recovery from the unfavorable impact especially during the lockdown period because of the Coivid-19 pandemic.

On a nine-month basis, the oil firm emphasized that its overall sales volume had likewise been higher by 23-percent versus a year ago.

And as top and bottom lines ricochet, Phoenix Petroleum President Henry Albert R. Fadullon said the company targets “to return working capital and liquidity to optimal levels and accelerate growth,” with warranted support from its stakeholders – mainly creditors and suppliers.

He added “from fuel and convenience store retailing to B2B, we continue to strengthen our offer, deliver operational excellence in our execution, and deepen our focus on cash flows as we bring the company back to its path to profitability by yearend.”

At this stage, Phoenix Petroleum pivots on cash preservation, which so far yielded P1.0 billion in savings from its operating expenses; and it was also able to preserve P1.5 billion via capital expenditure (capex) rationalization strategy.

In terms of overseas volume, the company pointed out this was bolstered through its subsidiary PNX Petroleum Singapore; as well as the higher demand for its liquefied petroleum gas (LPG) products in Vietnam, which it was able to reinforce because its off-take agreement with Hengyi Industries of Brunei Darussalam.

“Leveraging on a supply partnership with Hengyi Industries, LPG Vietnam has grown its volume three-fold since Phoenix’s acquisition of the business last year,” the oil firm stressed.

On domestic volume, Phoenix Petroleum indicated this already climbed by 14-percent quarter-on-quarter as the government eases community quarantine restrictions and sets gradual re-opening of travel to boost tourism flow in various parts of the country.

Phoenix Petroleum expounded “retail led the recovery with a 36-percent sequential volume growth in the third quarter,” adding that “even with public transportation yet to be fully restored to normal, retail sales have already reached 80-percent of pre-Covid volume.”