Listed independent oil firm Phoenix Petroleum Philippines Inc. reversed its net loss of P95 million from January to September 2020 to a net income of P170 million this year on the back of higher volume sold.

The oil firm continued to exceed its pre-pandemic volume in the third quarter despite stricter mobility restrictions for most of the period.

This boosted revenues by 81 percent year-on-year as the sustained volume growth was compounded by rising commodity prices and forex depreciation, it said.

“We are proud of the sustained growth in the third quarter. This is the product of the team’s hard work for the past 18 months as we position the business stronger during the pandemic and aim for growth as the economy emerges from it,” Phoenix Petroleum president Henry Albert Fadullon said.

The company’s overall volume rose 33 percent year-on-year, led by growth in the domestic business-to-business (B2B) segment and the overseas trading business.

Broken down, domestic volume increased by 29 percent as the oil firm expanded sales to B2B industries, and due to robust liquefied petroleum gas (LPG) demand.

Its LPG business grew 35 percent, underpinned by a steady growth in cylinder sales, which was accelerated by the increasing contribution from the new canister business.

Meanwhile, overseas volume increased by 37 percent, driven by growth in the trading business.

The retail business was set back in the third quarter by the re-imposition of stricter quarantine measures in major cities and provinces all over the country in August and September. As of end-September, its stations counted at 685.

“We have diversified our income streams with new B2B markets, a new station format – Phoenix Block – and a new SKU in our LPG portfolio. We likewise strengthened our digital presence with our own LIMITLESS app that, to date, has generated over P500 million in transaction value,” Fadullon said.

Per unit operating expenditures (OPEX) declined 29 percent, driven by continued efficiency improvements, which also translated to a 78 percent jump in operating income to P1.64 billion.

Phoenix Petroleum continues to progress on its deleveraging efforts with a lower overall debt level and declining leverage as of September. Liquidity, meanwhile, has yet to revert to its optimal levels.

“At the height of the pandemic, our just-in-time inventory strategy served us well by minimizing losses from rapidly falling prices, and slowdown in demand. In today’s upcycle environment, our gains are limited as reflected in the softer third quarter growth versus second quarter. But overall, it is net beneficial to us as it provides more stability and less volatility,” Fadullon said

Phoenix Petroleum said momentum is expected to further pick up with the acceleration in vaccinations nationwide, slowing COVID infections, and easing restrictions going into the fourth quarter.

“As quarantine restrictions are eased, and more economic activity is expected during the holidays, we are looking forward to capping off the year with an even more vigorous business performance,” Fadullon said.

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This story originally appeared on The Philippine Star.