September 15, 2014 [GMA News] - Listed oil player Phoenix Petroluem Philippines Inc. is building a new jet fuel storage facility in Cebu exclusively for Cebu Pacific under a renewed contract with the Gokongwei-led budget carrier.
In a disclosure to the Philippine Stock Exchange on Monday, Phoenix Petroleum said it signed a 10-year supply contract with Cebu Pacific, extending the supply deal signed in 2005.
Under the agreement, the oil firm will construct a Jet A-1 storage facility in Tayud, Consolacion, Cebu for the airline.
“We just renewed the 10-year deal in 2004. The new storage facility will solely be for Cebu Pacific’s Visayas and Mindanao operations,” Phoenix Petroleum vice president for external affairs Raymond Zorilla told GMA News Online.
The company, however, has not yet the crunched numbers on how much the new storage facility will cost, Zorilla said. “It depends on the capacity, but usually, a storage facility will take three to six months to build,” he said.
Phoenix Petroleum also signed an agreement with Universal Robina Sugar Milling Corp. (URSUMCO) to buy and distribute all the ethanol output of URSUMCO. The miller is a unit of Cebu Pacific’s sister company Universal Robina Corp.
In the first semester, Phoenix Petroleum registered P402 million in net income, up 8 percent from P372 million a year earlier.
Revenues for the period fell 15 percent to P18.515 billion from P21.832 billion, primarily due to the 21 percent drop in sales volume of refined petroleum products, tempered – however – by higher revenues from fuel service, shipping, storage and other revenues.
