Phoenix Petroleum has cut down its capital expenditure (capex) for 2021 to Php800 million, nearly half its Php1.5 billion allocation in 2020 to save cash and rationalize spending.
Based on a report from BusinessMirror, Phoenix Petroleum Vice President for External Affairs Raymond Zorrilla said the lower capex for this year will allow the country’s third-largest oil firm to focus on its expansion plans and take advantage of existing assets and capital line strategy.
Phoenix’s capex for 2020 was actually half of the Php3 billion it programmed for the year.
This year’s capex would be sourced from internal funds and will include the carry-over budget from 2020 and growth capex for liquefied petroleum gas (LPG) and retail.
Phoenix’s LPG business has been a major revenue driver for the company. The Dennis Uy-led firm was able to extend its overseas ventures with triple volume growth recorded in Vietnam by its subsidiary Phoenix Gas Vietnam LLC.
In 2020, Phoenix posted a net income of Php63 million in 2020, 96% less than the Php1.49 billion it registered in 2019, mostly due to its strong LPG business that experienced a 32% year-on-year volume growth.
The company later clarified that it is not for sale, but that investors are welcome. It even announced in March that it is looking to unload shares and divest their assets to settle its debts following the impact of the pandemic on the oil demand.