As debt restructuring efforts continue, Phoenix Petroleum Philippines, Inc. has disclosed that it cannot issue dividends for its preferred shares, citing the absence of unappropriated retained earnings. The company, which has been experiencing financial challenges in recent years, remains focused on stabilizing operations and addressing its financial obligations to creditors, suppliers, and stakeholders.
In a disclosure to the Philippine Stock Exchange (PSE), Phoenix Petroleum confirmed that its financial position has not significantly improved, making it impossible to fulfill dividend payments at this time.
“There is no significant change in the financial position of the company. Hence, in as much as we would like to make such dividend payments or redeem its preferred shares, currently the company has no unappropriated retained earnings,” the oil firm stated.
Phoenix Petroleum continues to incur financial losses, forcing it to prioritize debt restructuring and working capital management. The company is still negotiating its Liability Management Exercise (LME) with creditors while internally managing its limited resources.
“The company is still focused on restructuring its debts or still negotiating for its Liability Management Exercise (LME) with our creditors while managing its current resources internally in order to increase working capital,” Phoenix said in its disclosure.
Despite these financial setbacks, Phoenix reassured stakeholders that it remains committed to settling its obligations, including payments to contractors, suppliers, and stockholders.
“While we are aware of our obligations, we are still unable to fulfill them as of this time,” the company acknowledged.
Phoenix Petroleum, which was incorporated on May 8, 2002, is engaged in the marketing and distribution of petroleum products on both a wholesale and retail basis. The company operates gas stations, oil depots, storage facilities, and allied services, making it one of the country’s key players in the fuel industry.
Its business segments include the trading and distribution of fuels for retail and industrial customers, marketing of LPG and lubricants, terminalling and hauling services, and lease of storage space. Additionally, through its subsidiaries, Phoenix has expanded into fuel retailing and non-fuel businesses, such as convenience store operations and digital payment services.
What are your thoughts on Phoenix Petroleum’s financial condition? Do you think its debt restructuring efforts will lead to recovery? Share your insights in the comments below, and follow Power Philippines for more updates on the energy sector!
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