Shareholders of Phoenix Petroleum Philippines approved the issuance of perpetual preferred shares of up to P5 billion at P1,000 apiece to refinance short-term loans and capital expenditures.
The Phoenix board also approved the appointment of BPI Capital Corp. and RCBC Capital Corp. as joint issue managers, underwriters and book runners.
The company registered a net income after tax of P1.32 billion in the first nine months of 2018, down slightly from P1.437 billion on year.
Phoenix’s net income attributable to parent equity holder was also lower by 32 percent to P1.171 billion from P1.29 billion on year.
Net income after tax for the third quarter fell to P350 million from P826.6 million a year ago.
“In this highly dynamic operating environment, we continue to recognize opportunities. We are broadening our products and services—fuels, LPG, convenience stores, payments, and soon, asphalt—developing credible and compelling offers that create value for our consumers, partners, and shareholders,” said Phoenix Petroleum chief operating officer Henry Albert Fadullon.
The company’s market share reamined at 7.1 percent based on the Department of Energy report as of the first half of 2018.
Revenues doubled to P64.963 billion in the first nine months from P32.556 billion on year, as the volume of petroleum products sold jumped 51 percent on year to a record-high of 2.02 billion liters.
The revenues, however, were offset by the rise in benchmark crude as well as the imposition of the new excise tax rates starting in January lat year.
Phoenix said its domestic business increased volume 12 percent, driven by fuels and liquefied petroleum gas, which rose by 11 percent and 23 percent, respectively. Breaking barriers and opening new markets for Phoenix, trading operations at PNX Petroleum Singapore Pte Ltd. added more than 500 million liters, accounting for over a quarter of consolidated volume sales.
Post-acquisition, the convenience store retailing business, through Philippine FamilyMart CVS Inc., has expanded average daily sales by 21 percent.
Gross expenses rose to P62.71 billion from P31 billion in the same period last year as the company pursued several acquisitions.