Phoenix Petroleum’s gross profit down in 9 months

Richmond Mercury – The Star of the Philippines

November 13, 2022 | 00:00

MANILA, Philippines — Davao-based Phoenix Petroleum businessman Dennis Uy saw his earnings before interest, taxes, depreciation and amortization (EBITDA) plummet by nearly a third in the nine months ending in September due to lower domestic fuel volume in the third quarter.

Year-to-date, the company’s EBITDA fell 32% year-on-year to 1.8 billion pesos.

The independent oil player said domestic fuel volume was significantly lower in the third quarter as overseas business activity paused after consecutive quarters of unprecedented growth.

“The fuels recovery was further delayed by lack of scale due to ongoing liquidity issues and uncertainties in global markets and economic growth,” the company said.

Phoenix said LPG business remained a bright spot in its portfolio, however, as it grew 11% quarter over quarter.

During the third quarter, it reported a 9% increase in domestic LPG volume compared to the same period last year and an 8% increase compared to the previous quarter.

Phoenix said overseas LPG recovered strongly after a weak second quarter, with volume up 16% quarter-on-quarter and 3% year-to-date.

“Both standalone businesses continue to benefit from robust underlying demand in the Philippine and Vietnamese markets, sufficiently supported by working capital,” he said.

Phoenix said it remained focused on bolstering its operations despite a tumultuous year of volatility in global oil markets, recessionary concerns amid record inflation, peso depreciation, monetary tightening and request at half mast.

The company has been able to expand its network through a capital-light strategy, having opened more than 700 stations nationwide to date.

Phoenix expects better results as the company transitions to a more sustainable supply chain and logistics model.

It also seeks to be able to return to pre-pandemic levels while continuing to benefit from higher productivity thanks to the structural initiatives and programs implemented over the past few years.

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