The Securities and Exchange Commission approved the sale of up to P10 billion worth of commercial papers by Phoenix Petroleum Philippines to help it fund projects and refinance debts.
The board of Phoenix approved the issuance of up to P10 billion in commercial papers in October. It tapped PNB Capital and Investment Corp. as sole issue manager, lead underwriter and sole book runner
The board of Phoenix also approved early this month the capital infusion of P507.925 million in three wholly-owned units. The capital call involves PFL Petroleum Management Inc. for P429.625 million, Subic Petroleum Trading and Transport Inc. for P55.8 million and Phoenix Global Mercantile Inc. for 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.
The company posted a 59-percent increase in net income to ₱969.8 million in the first six months from P610 million year-on-year.
Revenues grew 113 percent to ₱40.25 billion in the first half from ₱18.89 billion on year, primarily 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,” said Phoenix chief operating officer Henry Albert Fadullon earlier.
Sales volume from the core fuel business rose 18 percent in the first half from the same period in 2017.
Retail volume increased 8 percent as Phoenix continues to expand its network, having opened 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 on year when it was operating as Petronas Energy Philippines.
The brand, Phoenix Super LPG, is expanding in Luzon and strengthening its presence in Visayas and Mindanao.