Phoenix Petroleum re-issues P1.1 B STCP

MANILA, Philippines - Independent oil player Phoenix Petroleum Philippines Inc. refinanced yesterday its short-term commercial papers (STCP) worth nearly P1.11 billion.

Phoenix Petroleum disclosed it re-issued P1.108-billion worth of STCP yesterday. The issuance will mature in 180 days, or until Jan. 4, 2017, and will bear a four percent interest rate.

In a text message, Phoenix Petroleum vice president for external affairs Raymond Zorilla said the refinancing will be used “for working capital in lieu of more expensive bank lines.”

“[It] was effectively a renewal of the facility that expired,” he said.

The firm said it is refinancing the P1.108-billion STCP listed on local debt market Philippine Dealing & Exchange Corp. (PDEx), which matured last April 13.

It was part of the three-tranche, P3.5 billion worth of STCP issued last January to bankroll its expansion.

The company has previously issued P3.5-billion STCPs in 2010 and in 2013.

In 2005, the Davao-based company started with five stations. As of end-2015, its retail station network expanded to 454.

The growth in its retail network helped the company end 2015 with a net profit of P905.9 million, up 47 percent from P616.4 million in 2014, mainly due to higher sales volume.

In particular, retail sales volume grew 30 percent in line with the growth in the number of service stations.