Phoenix allots P4.9 B for property holding unit

Listed Phoenix Petroleum Philippines Inc. is pouring in P4.9 billion over a three-year period to expand its property holding unit.

In a disclosure to the Philippine Stock Exchange yesterday, Phoenix said its board cleared the investment of P4.9 billion in Duta Inc.

“This is in order to allow the increase in capital stock of Duta,” Phoenix Petroleum company vice president for external affairs Raymond Zorrilla said in a text message.

It was acquired by the oil firm in May 2017 alongside the purchase of Petronas Energy Philippines Inc. (PEPI), the local unit of Malaysian oil and gas company Petronas Dagangan Berhad.

Duta used to manage and hold the various land parcels used in relation to PEPI’s business.

Meanwhile, PEPI—now Phoenix LPG Philippines Inc. – was engaged in the business of selling Petronas liquefied petroleum gas (LPG) in cylinders for household and commercial use as well as LPG in bulk for industrial use and autogas, an environmentally-friendly alternative fuel for vehicles, for over 20 years in the country.

Phoenix Petroleum was established in 2002 in Davao City and listed on the Philippine Stock Exchange in 2005 to capitalize on investor confidence. It has since expanded to 630 retail stations around the country as of the end of June.

It continues to strengthen its position in the retail and commercial petroleum business and has supporting interests in lubricants, LPG, asphalt, financial technology and retail convenience stores. It also has trading offices in Singapore and has investments in LPG retail in Vietnam. 

In the first half, the company posted net earnings of P896.83 million, down seven percent year-on-year.

However, its operating income rose 22 percent to P2.07 billion, fueled by retail growth and new businesses such as LPG and Phoenix Petroleum Singapore (PNX SG). 

Its LPG business saw a 24 percent jump in volume on the back of strong Visayas-Mindanao operations and expansion in Luzon.

VisMin volume grew 16 percent in the first half, accounting for 87 percent of volume, while Luzon volume increased 85 percent, contributing 13 percent versus four percent prior to the acquisition and operation by Phoenix.