Phoenix Petroleum reports Php95M net loss in first 9 months

phoenix petroleum

Dennis Uy-led Phoenix Petroleum has posted a net loss of Php95 million from January to September 2020, it said in a disclosure to the Philippine Stock Exchange.

The said figure is a reversal of the Php918 million net income it registered in the same period last year.

Phoenix, which recently became the country’s third-largest oil player, first reported a Php386 million net loss in the first quarter due to the lockdowns brought by the COVID-19 pandemic. The company then posted a much lesser loss of only Php5 million in the second quarter before zooming to a Php296 million net income in the third quarter.

The third quarter growth was driven by a 42% increase in overall volume year-on-year on higher overseas and domestic demands following the lifting of the enhanced community quarantine in most parts of the country.

Domestic volume increased by 14% quarter-on-quarter with travel restrictions easing nationwide. Retail led the recovery with a 36% sequential volume growth in the third quarter alone. Even with public transportation yet to be fully back to normal operations, retail has already reached 80% of its pre-pandemic volume. Nearly all of Phoenix’s 665 service stations are now under regular operations.

Domestic demand for the company’s resilient liquefied petroleum gas (LPG) products went up past pre-pandemic levels. LPG, which became the Phoenix’s driving force in the second quarter, now comprises 17% of the company’s domestic volume — up from ten percent in the same period last year.

“Our mission to become an indispensable partner in the journey of our customers, employees, and communities is more relevant than ever today as we navigate our way through the uncertainties together. With the support and confidence of our stakeholders, including creditors and suppliers, we will be able to return working capital and liquidity to optimal levels and accelerate growth,” said Phoenix President Henry Albert Fadullon.

Looking beyond the pandemic, Phoenix has partnered with Mesa Energy to introduce a gen-set technology that uses propane-rich LPG to provide cleaner and reliable power supply to remote, off-grid locations. The technology is currently being piloted at the Balesin Island Club in Polillo, Quezon.