Phoenix Petroleum Philippines Inc. is diversifying into the road transport business as part of its expansion program.
The board of Phoenix on Friday approved the creation of a new wholly-owned subsidiary to invest and manage a road transport business.
It told the Philippine Stock Exchange its board approved the transfer its current road transfer unit operations to a new corporation “to maximize its efficiency and expansion.”
It also approved the investment of corporate funds to the new wholly-owned subsidiary amounting to P57 million in whole or in part as initial capitalization
“The objective is to simplify operations. As road transport is a non-core activity, there are efficiencies that can be unlocked by possibly joining with established partners with proven track records and expertise. By having a potential partner, we can also minimize the exposure specially to HSSE (health, safe, security, and environment) risks,” said Phoenix senior vice president Raymond Zorrilla.
Phoenix was established in 2002 in Davao City, Philippines. It listed on the PSE in 2005 to capitalize on investor confidence. It has since expanded to over 615 retail stations around the country as of end March this year.
It continues to strengthen its position in the retail and commercial petroleum business and has supporting interests in lubricants, LPG, asphalt, financial technology, and retail convenience stores.
It has trading offices in Singapore and has investments in LPG retail in Vietnam.
The company is set to offer the third tranche of its commercial paper program amounting to P3 billion tentatively scheduled next month.
The commercial paper Series C will have a tenor of 360 days from the issue date tentatively set on December 11.