Phoenix Petroleum transfers 72 gasoline stations to subsidiary

Published February 1, 2020, 12:00 AM

by manilabulletin_admin


Listed firm Phoenix Petroleum Philippines, Inc. has transferred 72 of its company-owned, dealer operated (CODO) stations to its subsidiary PFL Petroleum Management, Inc. (PPMI), so the management of these assets can already be taken care of by that entity.

The retail stations being assigned to PPMI’s charge had been valued at ₱700 million, according to Phoenix Petroleum’s disclosure to the Philippine Stock Exchange.

The Uy-led firm explained that such move is “part of the capital investment in PPMI” that the company’s board of directors had approved in June last year.
Atty Raymond Zorrilla, senior vice president for external affairs, business development and security of Phoenix Petroleum said, the transfer of the facilities had been mainly intended for “the management of the retail stations.”

He has not expounded if this is the first re-assignment of the CODO stations to PPMI or if there would still be subsequent transfer of asset management to the subsidiary.

Last year, parent firm Phoenix Petroleum injected additional ₱429.625-million capital investment to PPMI, so this subsidiary can be beefed up as an entity to manage and supervise the operations and marketing of various kinds of service-oriented companies, including the gasoline stations.

“The additional investment shall be utilized to correct capital deficiencies and to support the expansion and establishment of additional stations under its management,” the company has noted then.

When additional capital outlay was funneled into PPMI last year, Phoenix Petroleum had in parallel set capital boost for its Subic Petroleum Trading and Transport Inc. (SPTT) for ₱55.8 million; and then Phoenix Global Mercantile Inc. (PGMI) for ₱22.5 million.

SPTT, in particular, is its subsidiary engaged in the buying and selling, supply and distribution as well as export and import of all types of petroleum for industrial, marine, aviation and automotive use.

That particular subsidiary’s primary function to-date is servicing the aviation fuel importation for Phoenix Petroleum clients like the Cebu Pacific airliner of the Gokongwei group.

The Uy-controlled oil firm qualified that it has sited its SPTT facility at the Subic Bay Metropolitan Authority (SBMA) freeport so it can avail of the relatively viable tax incentives. SPTT has been sourcing fuel from offshore via letter of credit, utilizing the shared credit facilities of Phoenix Petroleum with some of its banks.