Phoenix Petroleum Corp. approved the transfer of 72 company-owned, dealer-operated retail stations worth P700 million to unit PFL Petroleum Management Inc.
Phoenix disclosed to the Philippine Stock Exchange on Monday the move formed part of its capital investment in PPMI as earlier approved by the board on June 24, 2019.
The board authorized the transfer of Phoenix’s allocated capital expenditure budget of P2 billion to wholly-owned subsidiary PPMI last year and “thereby increase its investments of same amount to PPMI for the purpose of retail expansion.”
Phoenix earlier approved the capital call on subsidiaries, including PPMI, for P429.625 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 and has diversified to other businesses, which recently include road transport with a capitalization of P57 million.
“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 earlier.
Phoenix was established in 2002 in Davao City, Philippines. It listed on the PSE in 2005 to capitalize on investor confidence and has since expanded to over 615 retail stations around the country as of end-March.
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 also has trading offices in Singapore and has investments in LPG retail in Vietnam.