MANILA—Listed Phoenix Petroleum Philippines, Inc. on Wednesday said its profit surged 21 percent to PHP1.09 billion in 2016, after its fuel sales climbed to an all-time high on the back of solid growth in retail and commercial volume.
Phoenix Petroleum told the local bourse fuel sales volume grew 25 percent, hitting the 1.5 billion liter milestone last year.
Retail sales volume was up 12 percent year-on-year, with the completion of 51 new retail stations during the year, bringing the total number of outlets built to 505 as of end December 2016.
Its commercial sales volume grew 33 percent from higher market share and increased consumption by distributors and corporate direct accounts, which include the power, transport, construction and aviation sectors.
Core earnings from the fuel business more than doubled from PHP416 million to PHP937 million due to better margins and sales mix.
Revenues grew 2 percent as lower oil prices year-on-year were offset by higher sales volume.
Last November, the company concluded its sale of its non-core businesses in shipping and industrial park operations to the Udenna Group, the effective parent and majority stockholder of the company, for total net proceeds of PHP3 billion.
Proceeds of the sale were used to pay down debt, which improved the company’s leverage, allowing room for further investments in its core business, including potential acquisitions.
Phoenix Petroleum continues to expand its supply chain assets, with higher tank capacities at its Villanueva (Cagayan De Oro) and Subic terminals in 2016.
This year, new depots in Tayud (Cebu) and General Santos are expected to be completed in the first and fourth quarters, respectively.
Further expansion is also eyed for the Calaca (Batangas) terminal in the third quarter.
Phoenix Petroleum is engaged in the nationwide trading and marketing of refined petroleum products and lubricants, operation of oil depots and storage facilities, hauling and into-plane services.