LISTED Phoenix Petroleum Philippines Inc. has secured the go-signal to invest $12.6 million (P655.20 million) in its Singaporean subsidiary to strengthen its presence on the island-state.
In a disclosure on Tuesday, the Davao City-based independent oil company said its board of directors approved the investment in PNX Petroleum Singapore Pte. Ltd.
In a text message, Raymond Zorilla, Phoenix Petroleum vice president for external affairs, business development and security, said the amount “is additional equity to support [PNX Petroleum Singapore’s] working capital requirements to be able to purchase inventory for trading.”
“The company’s trading operations has been expanding, and added equity supports the commitment of Phoenix Petroleum to PNX Petroleum Singapore,” he added.
Earlier this month, PNX Petroleum Singapore signed an offtake venture agreement with Singapore-based Hengyi Industries International Pte. Ltd. on buying liquefied petroleum gas (LPG) from Brunei Darussalam in a bid to further bolster its presence in the region.
Under the deal, the Dennis Uy-led company would purchase LPG in the future from HYII’s refinery in the Southeast Asian nation.
The accord is expected to take effect within the year following the subsidiary’s acquisition of PNX Conqueror, the company’s first pressurized LPG carrier with a capacity of 2.5 kilotons (kT), and another with a capacity of 4.6 kT in preparation for the venture.
“The latest LPG venture in Brunei is expected to support Phoenix’s LPG expansion in both the Philippines and Vietnam,” the listed firm said.
In May, Phoenix Petroleum strengthened its presence in Vietnam with PNX Energy International Holdings Pte. Ltd.’s establishment of Phoenix Vietnam Pte. Ltd.
Incorporated in 2002, Phoenix Petroleum is into trading and marketing refined oil products, including liquefied petroleum gas and lubricants; operating oil depots and storage facilities; and offering hauling and into-plane services.
Phoenix Petroleum shares ended flat at P11 each on Tuesday.