Phoenix Petroleum Philippines said Sunday it posted a net income of P63 million in 2020 on stronger financial performance in the fourth quarter and cost-cutting measures.
Phoenix said it posted a positive net income despite the impact of the COVID-19 pandemic which saw demand and oil prices plunger worldwide. The company posted a profit of P1.494 billion in 2019.
“We have accelerated our structural transformation, reducing opex [operating expense] per liter by 32 percent. We delivered on our commitments and cut opex and capex [capital expenditures] similarly. We expect to continue to benefit from these operational improvements over time,” said Phoenix president and chief executive Henry Albert Fadullon in a statement.
Phoenix closed 2020 strong on the back of a 32-percent year-on-year growth in full-year volume and improving market conditions as global oil prices recovered and economic activities picked up in the fourth quarter.
The company said efforts to rationalize opex and capex resulted in a combined 38 percent decline year-on-year.
It said improved working capital management, shorter cash cycle and refinancing initiatives strengthened its financial position with interest costs down by 28 percent and total borrowings lower from last year.
“It was a strong finish to a challenging year. For this year, while vaccine developments are encouraging, the resurgence of the virus and the new rounds of lockdown may continue to dampen overall consumer confidence and industrial and commercial activities. Nevertheless, our desire for growth has not been diminished, and we will accelerate it by sweating our existing assets and keeping our sharp focus on cost discipline,” said Fadullon.
Full-year overseas volume, which more than doubled in 2020, thrived amid the pandemic, the company said.
PNX Petroleum Singapore was able to expand its external fuels and liquefied petroleum gas sales during the year, leveraging on the scale of Phoenix’s domestic operations.
Overseas LPG volume, through Phoenix Gas Vietnam, almost tripled in volume during the year as the country became one of the fastest to recover from the pandemic.
Domestic volume rebounded by 32 percent quarter-on-quarter in the fourth quarter, easing the full-year decline to 20 percent for the full year.
LPG grew 32 percent year-on-year and the company said domestic LPG was well-positioned to capture opportunities not only in under-penetrated retail and commercial markets but also changing consumer behavior post-pandemic.
It said momentum was also growing in the commercial and other B2B sectors and fueled sharp recovery in domestic business, leading to 51-percent volume growth in the fourth quarter versus the third quarter.