The board of Phoenix Petroleum Philippines approved the issuance of up to P10 billion in commercial paper to fund working capital requirements and refinance short-term loans.
Phoenix plans to register the paper with the Securities and Exchange Commission and Philippine Dealing and Exchange Corp. It tapped PNB Capital and Investment Corp. as sole issue manager, lead underwriter and sole book runner
The Phoenix board also approved the capital infusion of P507.925 million into three wholly-owned subsidiaries this month.
The three are PFL Petroleum Management Inc., P429.625 million; Subic Petroleum Trading and Transport Inc., P55.8 million; and Phoenix Global Mercantile Inc., P22.5 million.
“The capital infusion shall correct capital deficiencies in the subsidiaries as well as for the use of expansion of their respective operations,” it said.
Phoenix is one of the country’s most aggressive oil companies today. It posted a 59-percent increase in net income to ₱969.8 million in the firs six months of 2018 from P610 million yer-on-year.
Revenues jumped 113 percent to ₱40.25 billion in the first half from ₱18.89 billion a year ago, driven by the 63-percent increase in total volume sold.
“As we grow our core business, we are also realizing the value of our new businesses, as we maximize synergies across our portfolio of fuels, lubricants, LPG, trading and supply, convenience store retailing, and asphalt. We are committed to delivering greater value to our stakeholders and being their indispensable partner,” Phoenix Petroleum chief operating officer Henry Albert Fadullon earlier said.
Sales volume from the core fuel business rose 18 percent in the first half from a year ago.
Retail volume increased 8 percent as Phoenix expanded its network to 545 stations nationwide.
Phoenix’s new businesses in liquefied petroleum gas, trading and supply, and convenience store retailing are also delivering value.
Phoenix LPG Philippines increased volume by 18 percent in the first half from a year ago when it was operating as Petronas Energy Philippines.