Phoenix Petroleum Philippines said it is reducing its 2020 capital expenditure budget to P1.5 billion from P3 billion because of the coronavirus pandemic.
Phoenix chief finance officer Ma. Concepcion de Claro said during the company’s virtual annual stockholders’ meeting focus would be on projects that provide immediate revenues.
“We are cutting capex to P1.5 billion and focusing on projects that are immediately revenue generating. We will continue to work to put the company of firmer financial footing as we have done in the past year,” de Claro said.
The company will also implement cost-cutting measures and keep expenses at bay amid a slowdown in demand, she said.
“We’re taking about P800 million in savings mostly sourced from marketing, advertising and travel as we shift resources from traditional channels to digital. These cost actions will help keep our opex in line with the expected weaknesses in demand this year,” de Claro said.