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Phoenix Petroleum posts 1.8-B net income in 2017

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By Myrna M. Velasco

With its ruffling feathers in the oil industry juggernaut in what many believe as targeted ascend to number 2 ranking in the sector, Phoenix Petroleum Philippines, Inc. has also started delivering impressive performance at its bottom line, logging P1.792-billion full-year net income in 2017.

That has been a 65-percent profitability rise from the 2016 full-year income level of P1.092 billion.

Yet, if its non-recurring gains and costs would be factored in courtesy of its acquisition of liquefied petroleum gas (LPG) business from Petronas last year, the company still posted 30-percent year-on-year income rise to P1.421 billion.

The profit jump, according to the company, had been primarily ushered in by “triple all-time highs in sales volume, revenues, and net income on core business.”

Taking all of these into account, the oil firm’s revenues escalated 45-percent to P44.426 billion in 2017.

Phoenix Petroleum President and CEO Dennis A. Uy emphasized that the company’s momentum in 2017 had been “a result of its investments over many years in people, products ,and partnerships.”

Taking off from business segments shoring up and buoyed top and bottom lines, Uy noted that the company “will continue to be opportunistic as we grow the business.”

Industry talks are rife that Phoenix Petroleum has already cemented its rise into number 3 ranking in the deregulated downstream oil sector, but reports have it that its next target would be a climb to the second spot – an industry landscape change that would totally erode the conventionally known “Big 3” in the sector.

Phoenix Petroleum further indicated that “the solid full year core income growth underscores the strength of the fuels business, in which sales volume increased by 17-percent to P1.76 billion liters from 1.5 billion liters in 2016.”

The hike in sales volume had been generally underpinned by the company’s addition of new stations, it said, plus acquisition of new direct commercial accounts across industries and the consolidation brought in by its newly minted LPG business.

The retail network of Phoenix Petroleum now consists of 530 stations, that in the process is also being beefed up by its integration of non-fuels services such as its Family Mart convenience stores.

Onward, the oil firm noted that “while delivering strong organic growth,” it will similarly continue to “invest in new revenue and profit streams.”

Over last year’s stretch alone, Phoenix Petroleum completed two acquisition deals – in LPG and non-fuel retailing, two core segments that could further reinforce its business strength in the industry.

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