Oil distributor Phoenix Petroleum Philippines said Wednesday net income in 2016 climbed 21 percent to a record P1.09 billion from P905 billion in 2015.
The company controlled by Udenna Group said earnings rose last year, after sales volume hit an all-time-high of 1.5 billion liters, up by 25 percent from a year ago.
Core earnings from the fuel business more than doubled to P937 million from P416 million on better margins and sales mix, it said.
Lubricant sales volume also saw an 18-percent growth year-on-year on increased market share.
Retail sales volume increased 12 percent year-on-year, with the completion of 51 new retail stations last year, bringing the total number of outlets to 505 as of end-December 2016.
Same-store sales growth remained strong at 18 percent on higher consumption, supported by brand-enhancing investments in marketing and advertising.
The company said commercial sales volume grew 33 percent, from higher market share and increased consumption by distributors and corporate direct accounts, which included the power, transport, construction and aviation sectors.
Revenues rose 2 percent, as higher sales volume offset lower oil prices.
The company concluded last year the sale of non-core businesses in shipping and industrial park operations to the Udenna Group, the effective parent and majority stockholder of the company, for total net proceeds of P3 billion.
“Proceeds of the sale were used to pay down debt, which improved the company’s leverage, allowing room for further investments in its core business, including potential acquisitions,” it said.
Phoenix also continued to expand its supply chain assets, with higher tank capacities at its Villanueva (Cagayan De Oro) and Subic terminals in 2016.
The company will open new depots in Tayud (Cebu) and General Santos are in the first and fourth quarters, respectively. An expansion is also eyed for the Calaca (Batangas) terminal in the third quarter.
Phoenix cited data from the Energy Department showing the company cornered a market share of 6.9 percent as of the first half of 2016, putting it on track to becoming the third largest oil company in the country by the end of 2017.