Phoenix Petroleum core income grows 35% in first half of 2017
Leading independent oil company Phoenix Petroleum Philippines, Inc. (PNX.PM) saw strong growth in the first half of 2017 as core income grew 35% year-onyear from P450 million to P610 million. Revenues from the core petroleum business also grew 24% at P18.9 billion in the first half of this year compared to the same period last year.
Including subsidiaries Chelsea Shipping Corp. and Phoenix Petroterminals and Industrial Park Corporation, which were divested in November 2016 and have since been deconsolidated, revenues and net income increased 24% and 8%, respectively.
The Company completed 518 Phoenix retail service stations as of the first half of 2017. Commercial also continues to deliver new direct accounts, at the same time expand its market share within existing accounts, with notable wins in power, marine transport, and road transport, among others. Furthermore, lubricants maintained its solid growth, with volume up 18% year-to-date.
“We will continue to sustain the growth momentum of our company as we expand our retail, commercial, lubricants, and LPG businesses, drive operational excellence, and acquire companies,” said Phoenix Petroleum President and CEO Dennis Uy.
In May 2017, Phoenix Petroleum announced the potential acquisition of Petronas Energy Philippines, Inc. (PEPI), marking its foray into the liquefied petroleum gas (LPG) market. Phoenix Petroleum secured approval from the Philippine Competition Commission last August 3 and is expecting to close the transaction in the same month.
The acquisition of PEPI will be a strong growth and value driver for Phoenix Petroleum as it continues to expand its presence in the petroleum industry. It will be consolidated into the Company beginning August and is expected to be already accretive to earnings by end 2017. PEPI is principally engaged in the LPG business in the Philippines, particularly in the Visayas and Mindanao regions. Upon completion, Phoenix Petroleum becomes a more diversified petroleum company with an enhanced product mix and a more robust platform for growth.