OIL firm Phoenix Petroleum Philippines Inc. said falling oil prices and lower sales cut its 2014 revenues by 20 percent and its net income by 7 percent.
In a disclosure to the Philippine Stock Exchange (SEC) on Thursday, Phoenix said its net income last year declined by 7 percent P616 million from P665 million.
Meanwhile, lower sales resulted in a 20 percent drop in revenue to P34.7 billion last year from P43.6 billion in 2013.
The company said fuel sales volume decreased 18 percent year-on-year in 2014, with the drop in sales mostly from the non-retail segment.
It said this was the result of “deliberate action to temper low margin sales” to its distributors and wholesalers.
Phoenix said average selling prices for the year declined in line with the continuous drop in global oil prices.
According to Department of Energy (DOE) data, total net price adjustments in the country for 2014 show that there was a net decrease of P13.29 for gasoline, P15.03 for diesel, and P28.52 for liquefied petroleum gas or LPG.
Despite lower sales by volume, Phoenix said its return on sales last year improved to 1.8 percent from 1.5 percent in 2013 in line with its strategy to focus on more profitable sales.
It added that while sales volume to distributors/wholesalers fell, volume from retail sales continued to grow in line with the year-on-year expansion of its retail network and increase in same-store-sales by 10 percent.
The company said its retail station network grew from 368 stations in 2013 to 418 stations as of December 2014, of which 221 are in Mindanao, 56 in the Visayas, and 141 in Luzon.
At the same time, sales to commercial accounts, primarily to the shipping, fishing, mining, power and transportation sectors, registered continuous growth during the year.
Phoenix Petroleum also supplies more than 50 percent of Cebu Pacific’s jet fuel requirements and handles all their logistics needs in Mindanao and parts of the Visayas.
The partnership was renewed recently with a long-term supply agreement. Phoenix Petroleum continues to expand its logistics and infrastructure, such as with the opening of its Mindoro storage facility to support both its network expansion and its commercial and industrial clients.
In 2014 its subsidiary, Chelsea Shipping Corp., expanded its fleet to 11 tanker vessels when it took delivery of the 146-meter MT Chelsea Donatela which, with its sister ship MT Chelsea Thelma, are the largest Philippine-registered oil tankers with a capacity of 14,000 DWT each.
The arrival of MT Chelsea Donatela increased the total capacity of Chelsea Shipping to 44,368 MT.
The new vessel, together with its sister ship, will serve the regional shipping requirement for petroleum products.
Chelsea Shipping is one of the top five petroleum tanker owners in the country, serving Phoenix Petroleum, Cebu Pacific Air, and National Power Corp., among other companies. It sails on local and regional seas.
With its investments in retail, logistics and shipping, Phoenix Petroleum’s total assets grew by 12 percent to P25 billion in 2014 from P22.4 billion in 2013.
“Phoenix Petroleum is the No. 1 independent and fastest growing oil company today with an expanding network of operations nationwide,” the company said.
Phoenix is engaged in the business of trading refined petroleum products and lubricants, operation of oil depots and storage facilities, shipping/logistics and other allied services.