Phoenix Petroleum sees revenues rise to P14B

Oil player Phoenix Petroleum Philippines Inc. expects full-year revenues to reach P14 billion, more than double its 2009 revenues of P5.8 billion due to higher fuel sales on the back of its aggressive expansion program. Phoenix chief operating officer Romy de Guzman told reporters his company targets to end the year with at least 163 stations nationwide, of which 130 stations are in the Visayas and Mindanao and 33 stations in Luzon. “Our target now is to be the leading independent oil player in the country by 2012. It's SMART (Specific, Measurable, Attainable, and Realistic Timetable)," de Guzman said. He said the company has been increasing its fuel imports because of growing consumption nationwide. Phoenix said its market share has doubled to 2.5 percent this year from 1.12 percent in 2009, citing data from the Energy Department. De Guzman said the company also benefited from the shutdown of the Batangas-Manila petroleum pipeline which severely affected the operations of Phoenix's rival Pilipinas Shell Petroleum Corp. [See: FPIC pipeline ops stopped as SC issues writ of kalikasan] "[Impact] is a bit positive. Although we still have very few stations in Metro Manila. We only have a total of 30 stations in Luzon and not much in Metro Manila. I guess most oil companies are benefiting from the pipeline shutdown," he said. Raising capital for expansion The company's board of directors earlier approved the expansion of the company's operations with a capital expenditure of about P1.5 billion by 2011. The capex is meant to beef up Phoenix’s terminal and depot facilities, and expand further its retail network with concentration in Metro Manila by adding around 40 retail stations next year. Joseph John Ong, Phoenix chief operating officer, said the company will raise the capex through a combination of borrowings, internal funds, and investors’ equity. "We will raise capital. There are a lot of ways. We’re looking for investors. We’re talking with the banks, considering the growth in requirements," Ong said. Phoenix also recently renewed its fuel supply agreement with Cebu Air Inc. for its jet A-1 requirements. The board also approved the appointment of Commissioner Diane Pardo Aguilar as the representative of the Social Security System, which invested an initial 7.5-million primary shares of Phoenix in November 2009. The government pension fund to date owns 9.62 percent of Phoenix. — MRT/VS, GMANews.TV