Phoenix transfers retail stations to subsidiary

MANILA, Philippines — Listed independent oil player Phoenix Petroleum Philippines Inc. is transferring some of its retail stations to subsidiary PFL Petroleum Management Inc. (PPMI) as part of its capital infusion in the company.

In a disclosure to the Philippine Stock Exchange, Phoenix said it was authorized to assign and transfer to PPMI 72 company-owned dealer-operated (CODO) retail stations worth P700 million.

In June last year, Phoenix allocated capital expenditure budget of P2 billion to PPMI and increase its investments for the purpose of retail expansion. 

To partly finance the capex allocation, the oil firm raised P7 billion from a preferred shares issuance in November. The proceeds were used mostly for depot and retail expansion.

In 2007, Phoenix Petroleum acquired PPMI which was engaged in the management of PTT retail stations in Luzon.

PPMI is engaged in the business of organizing and managing the operations and marketing of Phoenix.

In 2018, Phoenix infused additional capital amounting to P707.93 million in its subsidiaries, including PPMI, to expand its depot and terminal facilities.

Broken down, the oil firm is putting in P55.8 million in Subic Petroleum Trading and Transport Inc. (SPTT), P429.63 million in Phoenix Global Mercantile, Inc (PGMI) and P22.5 million in PPMI.

Established in 2002 in Davao City, Phoenix now has a market capitalization of P15.5 billion and has over 650 retail stations across the country.

It has also expanded to complementary and related businesses such as liquefied petroleum gas (LPG) under Phoenix LPG Philippines Inc. (PLPI), asphalt, and convenience store retailing under Philippine FamilyMart.

Phoenix Petroleum has also been aggressively expanding its network overseas.

In 2017, it established PNX Petroleum Singapore Ltd. Pte., the petroleum trading entity of the Phoenix Group envisioned to enhance the petroleum importation efficiencies of the group and to provide access to fast growing markets in Southeast Asia.