November 18, 2023 [Manila Bulletin]- Financially-plagued Phoenix Petroleum Philippines Inc, has widened its net loss within January-September stretch this year to P3.688 billion from a relatively leaner P1.0 billion in the same period in 2022.
The company’s net loss before tax, as reported to the Philippine Stock Exchange (PSE), was also at P4.107 billion in the nine-month span versus last year’s P1.527 billion; while its operating loss of P1.182 billion reversed its operating income of P700 million within the comparative period last year.
Amid persistent challenges in its operations, however, the oil firm indicated that it is already seeing “positive signs of recovery in its numbers this year despite the economic setbacks and lingering effects of the pandemic.”
The company has been pinning its hope on the operations of its various business segments – including its liquefied petroleum gas (LPG), terminaling service as well as its offer of asphalt to customers.
In the third quarter, in particular, Phoenix Petroleum conveyed that its LPG business posted 57-percent leap in earnings before interest, taxes, depreciation and amortization (EBITDA) – and with that, it was able to surpass its performance in 2022.
According to Phoenix Petroleum President Henry Albert Fadullon, “the improvement in the third quarter is the product of the team’s resilience, hard work and discipline despite the challenges of the year 2023.”
He asserted that the company “diversified (its) income streams with our terminaling business, and continue to strengthen the other businesses under the Phoenix umbrella.”
Fadullon enthused that “despite difficulties, we are confident in our path to long-term, sustainable growth, and will continue to focus on improving and implementing high-impact activities to further sustain our path to recovery,”
For the growth in its LPG business unit, Phoenix Petroleum qualified that “this is mainly driven by prudent cost management, volume and margin improvements.”
It specified that the company’s volume “grew by 11% compared to the same period last year and 17% from third quarter of last year, while year-to-date margins boosted 41% increase from 2022’s performance in the same period.”
On its terminaling service offer, Phoenix Petroleum stated this “made headway in 2023, bringing in additional revenue from leasing out fuel storage this year, compared to the previous year when it was tagged purely as a cost center.”
Within this year’s third quarter, it was highlighted that at least 50-percent of the storage facility of Phoenix Petroleum has already been covered by lease arrangements.
“The company is looking to grow this business pursuing up to 70% of its storage capacity leased out by yearend,” the oil firm stressed.
For its asphalt business segment, the company pointed out that this “contributed largely to the company’s performance this year with year-to-date volume growth of 16%.”
By far, Phoenix Petroleum noted that it was to “maximize its business potential as it posted 21% increase in gross margin, resulting in 35% jump in third quarter year-to-date EBITDA from the same period in 2022.”
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