Phoenix Petroleum Philippines Inc. said Monday it temporarily halted its importation of diesel and gasoline products since March 2023 amid price volatilities in the world oil market.
Phoenix said in a disclosure to the Philippine Stock Exchange that under current trading conditions, the company found it more favorable to buy domestic fuels than imported ones.
“This way, it allows the company to manage its resources as well as reduce and manage risks due to inventory losses. Nonetheless, should trading conditions change, the company will evaluate its supply approach and strategy,” it said.
Phoenix last year implemented steps to restructure its debt. It agreed to sell some of its assets to BDO Unibank Inc. in October 2023 with proceeds estimated at P9 billion. These assets involve its terminals, depots and retail stations.
Phoenix officer-in-charge chief finance officer Ignacia Braga earlier said Phoenix was streamlining its operations, restructuring its debt and identifying potential sources of liquidity to generate cash flow to settle its obligations or generate some liquidity for working capital.
“The key objective is to bring back the company to a healthy financial position and regaining its stronger market position that it enjoyed pre-pandemic,” she said.
“In this regard, a major focus on its liability management exercise which involves negotiations with its creditor banks and suppliers for mutually acceptable debt servicing agreements and on a case a case basis divesting certain assets which has the effect of either raising capital for operations or reducing debt,” Braga said.
She said the proposed sale and lease back with BDO also grants the company the exclusive right to repurchase the assets within three to five years from the time of sale when the company gets in a better position/
Phoenix also divested its investments in PNX Petroleum Singapore Pte. Ltd (PNX SG) and planned to use the over P1 billion ($19.2 million) in proceeds for working capital.