NEWS

Phoenix Petroleum swings to profit for FY 2020

Mar 31, 2021

Efforts to rationalize OPEX and CAPEX resulted in a combined 38% decline year-on-year. Improved working capital management, shorter cash cycle, and refinancing initiatives strengthened its financial position with interest costs down by 28% and total borrowings lower from last year. The Company’s P158 million net income in Q4 of 2020 has effectively reversed prior losses, leading to a P63 million net income for FY 2020.

Full-year overseas volume, which more than doubled in 2020, thrived amidst the pandemic.

PNX Petroleum Singapore was able to expand its external fuels and LPG sales during the year, leveraging on the scale of Phoenix’s domestic operations.

Overseas LPG volume, through Phoenix Gas Vietnam, almost tripled in volume during the year as the country became one of the fastest to recover from the pandemic.

Domestic volume rebounded by 32% quarter-on-quarter in Q4, easing the full year decline to 20% for the full year.

LPG grew 32% year-on-year against industry contraction. The Luzon business is still coming off from a low base but continues to grow and expand its distribution network. The VisMin business sustained double digit growth. Domestic LPG is well-positioned to capture opportunities not only in underpenetrated retail and commercial markets but also changing consumer behaviors post-pandemic.

Momentum is growing in the commercial and other B2B sectors and has fueled sharp recovery in domestic business, leading to 51% volume growth in Q4 versus Q3. Pick-up has been observed in wholesale as well as in key industries such as power and manufacturing, supported by pandemic-resilient industries like fishing.

1 Based on latest available Department of Energy data as of June 2020.

Compared to Q3, retail was 2% higher in the last quarter of 2020 amid the holiday season, which has been tempered by the GCQ enforcement in major cities. Retail closed the year 86% of full year pre-COVID volume. As of end-December 2020, total station count stood at 670.

“We have accelerated our structural transformation, reducing OPEX per liter by 32%. We delivered on our commitments and cut OPEX and CAPEX similarly. We expect to continue to benefit from these operational improvements over time,” said Phoenix President and Chief Executive Officer Henry Albert Fadullon.      

Fadullon adds that the Company is executing and has made progress on its balance sheet programs:

Phoenix is blazing the trail for supercharged consumer lifestyle programs via its own Limitless app. The move capitalizes on the shifting trend towards cashless payments and e-commerce. At present, Limitless boasts over 110,000 users, leveraging on Phoenix’s existing 20,000 retail touch points that are generating over 500,000 daily transactions. Phoenix sees the app as a sales channel complementing traditional B2B and B2C channels.

“It was a strong finish to a challenging year. For this year, while vaccine developments are encouraging, the resurgence of the virus and the new rounds of lockdown may continue to dampen overall consumer confidence and industrial and commercial activities. Nevertheless, our desire for growth has not been diminished and we will accelerate it by sweating our existing assets and keeping our sharp focus on cost discipline,” stated Fadullon.

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About Phoenix Petroleum

Phoenix Petroleum is engaged in the nationwide trading and marketing of refined petroleum products, including LPG and lubricants, operation of oil depots and storage facilities, hauling and into-plane services; convenience store retailing; and trading and supply.

With a vision to be an indispensable partner in the journey of everyone whose life it touches, Phoenix Petroleum is committed to deliver world-class services, empower people, and spire every Filipino’s entrepreneurial spirit.

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This originally appeared on phoenixfuels.ph

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