Phoenix Petroleum sees better Q2 results

MANILA, Philippines — Phoenix Petroleum Philippines Inc. sees better numbers in the second quarter.

“Compared to what has been reported by the industry, we generated an operating income and a positive EBITDA. Further, we are encouraged by positive results in April and May enough to suggest [the] worst is behind us,” said newly-installed Phoenix president Henry Albert Fadullon.

The petroleum industry is experiencing challenges due to geopolitical tensions compounded by the coronavirus pandemic which began to materially impact demand towards March.

However, Phoenix has remained resilient compared with other major players, Fadullon said.

“Definitely Phoenix has not been spared from the challenges, but we are able navigate the downturn better due to our earlier investments in strategic, higher-margin and diversified businesses areas such as retail and liquified petroleum gas (LPG),” he said.

LPG volume went up by 39 percent with consistent double-digit growth in its core market in Visayas and Mindanao coupled with sustained expansion in Luzon.

Fuel retail volume was also higher by nine percent on the back of its network expansion last year. As of the end of March, 660 stations opened nationwide.

During the company’s stockholders’ meeting last week, Fadullon said LPG sales continued to grow deep into the lockdown period, bucking the trend in other business segments.

“April, the first full month on lockdown, was brutal with sales hovering around 50 to 60 percent from pre-lockdown levels except LPG, which continued to post strong growth, the one bright spot in the portfolio during the crisis,” he said.