December 7, 2010 [Manila Standard Today] - Mindanao-based Phoenix Petroleum Philippines has earmarked P1.5 billion (EUR26 mln) for capital outlays next year to expand its retail network and depot facilities.
Phoenix Petroleum told the Philippine Stock Exchange that it would pursue raising activities, including tapping strategic partners and issuing additional shares or equity to interested and potential investors.
Phoenix listed 36.25 million more shares in the stock exchange last month to generate P355 million in proceeds.
Phoenix said it will earmark proceeds from the offering for capital expenditures and an increase in working capital. The company has budgeted P150 million for the construction of depot and logistics facility and P90 million for retail service stations.
The company also plans to establish terminal operations in other areas and expand its dealership network, services and logistical support.
Phoenix is engaged in trading refined petroleum products, lubricants and other chemical items on wholesale basis and operation of oil depots and storage facilities and allied services mainly in southern Philippines. Its products and services are distributed and marketed under the “Phoenix Fuels Life” trademark.
The oil company operates 20 retail service stations and leases storage space in its terminal depots in Davao, Cagayan de Oro, General Santos and Cotabato City.
The company has gained a 5-percent market share in its two years of commercial operations in terms of volumes sold in Southern Mindanao in 2006. It projected its net income to grow 70 percent to P144 million this year from P74 million in 2006. It also expects net income to increase by at least 50 percent over the next two years.
