Phoenix Petroleum Philippines said it is more resilient than other oil companies despite the challenges posed by the global COVID-19 pandemic.
“Compared to what has been reported by the industry, we generated an operating income and a positive EBITDA (earnings before interest, taxes, depreciation and appreciation). Further, we are encouraged by positive results in April and May enough to suggest worst is behind us,” said new Phoenix president Henry Albert Fadullon.
Phoenix registered a gross profit of P1.7 billion in the first three months of 2019 on revenues of P21.9 billion during the period, leading to an EBITDA of P503 million. Operating income and net loss stood at P179 million and P215 million, respectively.
Fadullon said the petroleum industry was experiencing challenges on geopolitical tensions compounded by the coronavirus pandemic that began to materially impact on demand toward March. But Phoenix said remained resilient compared with other commpanies.
“Definitely Phoenix has not been spared from the challenges, but we are able navigate the downturn better due to our earlier investments in strategic, higher-margin and diversified businesses areas such as retail and liquified petroleum gas (LPG),” said Fadullon.
LPG volume surged 39 percent with consistent double-digit growth in its core market in Visayas and Mindanao, coupled with sustained expansion in Luzon. Fuel retail volume was also higher by nine percent on the back of a network expansion in 2019. Phoenix’s nationwide network as of end-March stood at 660 stations.
The company is also bullish with its partnership with US-based Mesa Natural Gas Solutions LLC, which will deliver the first batch of gas-powered genset units in the Philippines this month.
Signed late last year between Mesa and Phoenix Pilipinas Gas and Power Inc. (Phoenix Gas), a wholly-owned subsidiary of Phoenix, the agreement designated Mesa to manufacture the gensets, with Phoenix in charge of the business in the country.
The generator sets are compact-designed, mobile and custom-engineered to help businesses continue their operations, especially those that are in remote areas and those struggling to get a reliable power supply due to the pandemic. The units will also use propane rich LPG, a clean, reliable and more sustainable power source to function, which will be supplied by Phoenix LPG Philippines Inc.
“We at Phoenix Gas have always been an advocate of the use of cleaner energy sources in the country. For years, we have been actively promoting LPG and LNG as viable options to broaden and diversify the Philippines’ energy mix,” Fadullon said.
