Phoenix Petroleum posted over 20% income growth despite global financial crisis

LISTED firm-Phoenix Petroleum Philippines, Inc. announced that it posted a 23 percent growth in income considering the volatility of oil prices that affected the industry.

In a statement, Phoenix Petroleum said its income rose to P150 million in 2008 from P122 million in 2007.

Total revenues rose to P4.615 billion, 95 percent higher than P2.364 billion in 2007.

Phoenix Petroleum said revenue growth was driven by substantial increase in sales volume of petroleum products and increase in revenues from fuels service and storage.

This was despite lower profit margins and increased business competition amid world oil prices reaching unprecedented levels.

A wider distribution network and expanded institutional customer base led to a growth in sales of petroleum products by 97 percent from P2.315 billion to P4.563 billion.

The sales volume of petroleum products and lubricants has increased by 66 percent from 68 million liters to 113 million liters.

At present, Phoenix has a total of 86 operating retail service stations or an additional of 53 stations from the 33 retail stations in 2007.

Last February the company inaugurated its 100th station which was owned by boxing icon Manny Pacquiao.

Meanwhile, income from fuel service and lease of storage facilities rose from P48 million in 2007 to P52 million in 2008.

Costs and expenses totaled P4.450 billion, up 97 percent from 2007’s P2.253 billion. Purchase costs of petroleum products increased in 2008, along with disproportionate movement of pump prices.

At the same time, expenses such as trucking and delivery costs increased as volume grew. Phoenix also expanded its business operations in the areas of Socsargen, Cotabato City and Maguindanao, and did trading activities in Cagayan de Oro City and Cebu City.

The company’s total assets increased to P2.368 million from P1.192 million the previous year. Stockholders’ Equity increased to P690 million from P566 million. Earnings per share were 0.91, compared to 0.94 in 2007. Book value per share was pegged at 3.76, from 3.93 in 2007.

Phoenix Petroleum is engaged in the business of trading refined petroleum products, lubricants, chemicals and an array of car care products and accessories. It also provides services such as depot operation, depot storage, logistics, into-plane and allied services.

It was listed on the Philippine Stock Exchange in July 2007, the first petroleum company to do so since the passage of 1998 Downstream Oil Deregulation Act.

In March, the Davao-based Phoenix acquired the Bacnotan Industrial Park Corp. (BIPC) to further strengthen its asset and equity position.

It is also looking at operating soon its Terminal in Calaca, Batangas with a 50 million-liter storage capacity and a short pier to guaranty the continued supply of fuel to the public. PHILIPPINE NEWS AGENCY

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