Phoenix Petroleum completes P4-B refinancing


Publicly listed firm Phoenix Petroleum Philippines Inc. has completed around P4.0 billion refinancing activity before the end of this year as part of its financial management program.

The firm disclosed to the Philippine Stock Exchange (PSE) that it first settled P3.0 billion in short term commercial papers (STCP) last December 5, then it was followed by the redemption of P1.25 billion worth of its preferred shares on December 18.

Phoenix Petroleum said it had undertaken “major steps in strengthening balance sheet” so it can keep pace with the challenges posed by the Covid-19 pandemic.

The oil company qualified that its STCP “was refinanced by a long term loan,” and that consequently enhanced the company’s liquidity profile and had relieved pressure on its immediate need for cash resources.

Additionally, the redemption of its PNX3A preferred shares had so far generated savings on cost of capital for the company.

Phoenix Petroleum President Henry Albert Fadullon acknowledged that while 2020 was a turbulent year, “we have been making headways in our engagements with creditors, and are ending the year with renewed strength and positivity.”

He added that with the completion of its refinancing exercise, the company gained traction on ensuring its “long-term viability as a business to come out a healthier and stronger enterprise after this pandemic.”

Beyond preserving cash resources through savings in capital and operational expenses, Fadullon noted that they are still counting on “the continued support and confidence of creditors.”

He stressed the firm’s recent steps on financial management have been part of their assurance to creditors “of our resolve to deliver on our commitments,” with him hinting that the company will be issuing other announcements “in due course.”

Phoenix Petroleum expounded that its financial management strategy will be underpinned by “a capital light expansion strategy that focuses on strategic partnerships and an integrated franchising across its fuel and LPG (liquefied petroleum gas) products, convenience stores and payments.”

By far, the company stated that it logged more than P800 million in savings from its operating expenses; and P1.5 billion savings from capital expenditures. For the full year, the oil firm said it is looking forward and somehow on track toward registering “positive earnings” – taking off from the P5.0 million net income it posted in third quarter this year.