Market volatility took a toll on the income of Phoenix Petroleum Philippines Inc. as it saw a very slight increase in its profit for the full-year 2013.
In its audited statements submitted to the Philippine Stock Exchange on Monday, it was revealed that Phoenix recorded a consolidated net income of P665 million in 2013, for a flat 2-percent growth compared to the P651-million income of 2012.
“Due to market volatility, our margins were squeezed and lessened but we managed to maintain profitability. Also, in order to gain market share by increasing volume sales, our selective and calculated strategy was to sell at minimal margins,” Raymond Zorilla, Phoenix vice president for external affairs, said in a text message.
The company also reported a 26-percent increase in its consolidated revenue to P43.5 billion in 2013 from P34.6 billion of the previous year.
The growth, as cited by the company in another filing to the local bourse, was fueled by a 31-percent increase in petroleum sales volume, driven primarily by the company’s continuously expanding retail station network.
After ending 2012 with 300 stations, Phoenix’s network reached 368 stations at the close of 2013. Of these stations, 209 are based in Mindanao, 47 in the Visayas and 112 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 supplies more than 50 percent of Cebu Pacific’s jet fuel requirements.
Total resources of the company went up to P21.76 billion in 2013, up by 32 percent from 2012, while its total shareholder’s equity was at P6.51 billion at the end of 2013 as against the P4.50 billion for 2012. The rise in shareholder’s equity was attributed to fresh capital infusion and the current year’s net income, net of the cash dividends declared in 2013.