Leading independent oil company Phoenix Petroleum Philippines, Inc. (PSE:PNX) posted net income of ₱1.437 billion in the first nine months of 2017, higher by 59% year-on-year. The results include the impact of the newly-acquired LPG business. Excluding the non-recurring gains and expenses related to the acquisition, core income reached ₱1.081 billion, higher by 9% year-on-year.
Revenues from the core petroleum business during the period were up 37% to ₱32.6 billion on the back of robust volume growth in retail, lubricants, and LPG. Third quarter volume was particularly strong.
The Company completed 523 Phoenix retail service stations as of the first nine months of 2017. It also continued to acquire new commercial direct accounts, while expanding its market share within existing accounts, including power, shipping, logistics, transportation, and manufacturing, among others.
“Phoenix Petroleum’s strong performance in the third quarter shows our commitment to growing the business through customer focus, operational excellence, and acquisition of complementary businesses,” said President and CEO Dennis Uy.
Through acquisitions, Phoenix Petroleum continues to create growth and opportunities in highly attractive industries and markets that are complementary to its core fuel business and are underpinned by strong macroeconomic fundamentals.
On August 2017, the purchase of Petronas Energy Philippines, Inc. (PEPI) was completed. PEPI has since been consolidated and renamed Phoenix LPG Philippines, Inc. (PLPI), a 100% owned subsidiary of Phoenix Petroleum.
On October 30, the Company announced the potential acquisition of Philippine FamilyMart, which holds the area franchise for FamilyMart convenience stores in the Philippines. The transaction is still subject to the approval of the Philippine Competition Commission.
With increasing disposable income in the country and today’s on-the-go consumer lifestyle, growth in convenience-related spending is expected to accelerate. Family Mart, with 67 stores in Luzon, is an excellent platform on which the Company can establish and grow its presence in the high-margin, fast-growing consumer retail space, and leverage on potential synergies with its affiliate companies.