Dennis Uy-led Phoenix Petroleum proceeded to build up its balance sheet after it settled Php3 billion in commercial papers (CP) on Monday.
In a disclosure to the Philippine Stock Exchange on Tuesday, the firm announced it has settled and paid the outstanding CP Series D issued on August 26, 2020 in the total amount of Php3.08 billion.
Phoenix, the country’s third largest oil firm, said the settlement of CP Series D was funded by a combination of internal funds and financing support from established institutional creditors.
Phoenix Petroleum President Henry Albert Fadullon said the settlement of the CRP is an overall reduction in their indebtedness, which puts the company on a firmer footing and positions it well in the second half of the year as they prioritize the customers’ needs and preservation of resources.
CPs are short-term debt instruments issued by financial institutions and large companies to build funds generally for a time period up to one year.
Fadullon added that the firm’s CP program was supported by the retail and institutional investors.
Phoenix Petroleum posted a record-high quarterly volume in the second quarter of the year, which was supported by the strong performance of its fuels and liquefied petroleum gas (LPG) businesses.
Fadullon said with the improvement in sales and their sustained efforts to manage their costs and capital well, Phoenix was able to shorten the cash cycle, and gradually deleverage.
Based data from the Department of Energy, Phoenix further increased its market share to 7.81% as of May from 7.1% at the end of 2020, solidifying its position as the country’s third largest oil player.