Phoenix Petroleum Philippines, Inc. (PNX.PM) posted a 47% increase in net income in 2015, earning Php 905.9 million compared to Php 616.4 million in the previous year.
This was driven by a 27% increase in fuel sales volume plus Php 319 million from the combined net income of the company’s subsidiaries Phoenix Petroterminals and Industrial Park Corp. (PPIPC) and Chelsea Shipping Corp. (CSC). PPIPC contributed Php 190 million in income from park operations and sale of land in its industrial park in Calaca, Batangas, while CSC contributed Php 129 million from its ship chartering operations. In 2014, both subsidiaries contributed Php 134 million.
Revenue decreased by 13% as a result of lower average selling prices as oil prices declined significantly in the world market.
Net income to sales ratio (return on sales) improved to 3% in 2015 compared to 1.88% in 2014 as a result of better fuel sales mix in favor of retail, higher efficiencies, and savings particularly from fuel trading and supply management operations combined with strong income from the subsidiaries.
Retail Sales volume grew 30% with the expansion of the company’s retail network. On the other hand, same-store-sales (network efficiency) increased by 20%. Phoenix Petroleum has 454 retail stations as of December 2015, up from 418 retail stations in 2014.
At the same time, sales to commercial accounts, primarily to the power industry, shipping, fishing, mining, aviation, and transportation sectors, registered continuous growth during the year. Phoenix Petroleum supplies more than 50 percent of Cebu Pacific’s jet fuel requirements and handles all their logistics needs in Mindanao and parts of Visayas. The combined volume for commercial accounts and aviation grew by 26%.
Phoenix Petroleum continues to expand its logistics and infrastructure. The opening of its new storage facility in Mindoro supports both its network expansion and its commercial and industrial clients.