DAVAO-BASED independent oil company Phoenix Petroleum Philippines (Phoenix Petroleum) posted net income of P1.09 billion in 2016, up 21 percent from the P905.9 million recorded in 2015.
In a disclosure to Philippine Stock Exchange (PSE) on Wednesday, the company said growth was driven by a 25 percent increase in fuel sales volume, hitting the 1.5 billion-liter milestone in 2016 amid solid growth in retail and commercial volume.
In addition, it said lubricant sales volume grew 18 percent year-on-year as its market share increased.
Core earnings from the fuel business more than doubled from P416 million to P937 million due to better margins and sales mix.
Retail sales volume was up 12 percent year-on-year, with the completion of 51 new retail stations during the year, bringing the total number of outlets built to 505 as of end December 2016.
Same store sales grew 18 percent on higher consumption, supported by brand-enhancing investments in marketing and advertising.
Commercial sales volume grew 33 percent, from higher market share and increased consumption by distributors and corporate direct accounts, which include the power, transport, construction, and aviation sectors.
Revenues increased 2 percent as lower oil prices year-on-year were offset by higher sales volume.
Last November, Phoenix Petroleum concluded the sale of its non-core businesses in shipping and industrial park operations to the Udenna Group, the effective parent and majority stockholder of the oil company, for total net proceeds of P3 billion.
Proceeds of the sale were used to pay down debt, which improved the company’s leverage, allowing room for further investments in its core business, including potential acquisitions. Debt to equity ratio dropped to 1.72:1 as of end December 2016 from 2.09:1 the previous year.
Phoenix Petroleum said it continues to expand its supply chain assets, with higher tank capacities at its Villanueva, Cagayan De Oro and Subic terminals in 2016. This year, new depots in Tayud, Cebu and General Santos are expected to be completed in the first and fourth quarters, respectively, and further expansion is also eyed for the Calaca, Batangas terminal in the third quarter.
Based on the latest data released by the Department of Energy (DOE), Phoenix Petroleum registered a market share of 6.9 percent as of the first half of 2016, putting it on track to becoming the third largest oil company in the country by the end of 2017.
Phoenix Petroleum is engaged in the nationwide trading and marketing of refined petroleum products and lubricants, operation of oil depots and storage facilities, hauling and into-plane services.