Phoenix Petroleum widens loss to P466.2 M in 2021

Published May 16, 2022, 5:09 PM

by Myrna M. Velasco

Uy-led Phoenix Petroleum Philippines Inc. suffered P466.201-million loss in 2021, significantly wider as against the P62.56-million loss it registered in 2020, according to a financial statement submitted to the Philippine Stock Exchange.

Nevertheless, the company’s earnings before interest, taxes, depreciation and amortization (EBITDA) registered 41 percent increase to P3.5 billion mainly attributed due to “solid LPG (liquefied petroleum gas) performance; consistent volume growth in commercial and overseas sales and recovering retail volume.”

Apart from the Philippine market, Phoenix Petroleum has presence in other key markets in the Southeast Asian region – primarily in Singapore, Vietnam and Indonesia.

According to Phoenix Petroleum President and CEO Henry Albert Fadullon, the company’s operating income had likewise jumped by 87 percent to P2.3 billion last year, “as we delivered double-digit sales growth compared to same period last year while we keep in check our operating expenses.”

He added “our trend of delivering healthy EBITDA demonstrates our commitment to prudent management of resources and our ongoing momentum across our businesses and diversified portfolio which saw strong support from our customers and partners.”

The Uy-led company emphasized that “despite challenges in new cases and emerging geopolitical risks that drive volatility in global oil prices, Phoenix is benefiting from strong domestic volume from its improving quarterly retail performance and new canister business in LPG.”

Even at the height of the coronavirus pandemic in the past two years, it was the LPG segment of the company’s business that had been its saving grace from the overall demand crunch in the petroleum sector.

In recent years, Phoenix Petroleum has been pursuing deleveraging strategy so it can balance its level of debts and keep it attune to the financial needs and outcome of its operations.

Fadullon noted “the combination of an improved operating earnings performance underpinned by continued debt reduction and the resilience of our businesses backed by active management of our inventories and receivables, help us mitigate the impact on demand and working capital.”

He expounded that the financial prudence strategy of the firm “further establish our position as a leading independent oil company that provides retail fuels and business-to-business services and offerings that cater to our customers and partners.”

Phoenix Petroleum currently has roughly 700 stations nationwide and these are complemented by value-added offerings at its retail network.