The Securities and Exchange Commission approved the application of independent oil player Phoenix Petroleum Corp. to sell P3.5 billion worth of short-term commercial papers.
Documents filed with the SEC showed that Phoenix would use the proceeds from the fund raising activity to finance the importation of fuels and lubricants in the first quarter of 2016.
This is the company’s third fund raising activity this year.
The oil company raised P1.5 billion from the issuance of STPC, which was listed with Philippine Dealing & Exchange Corp. in March.
The company also generated P2 billion in fresh funds from the issuance of preferred shares this week. The 20 million perpetual preferred shares were offered in two series, of which 12.5 million were under Series A and 7.5 million under Series B.
The oil company was able to raise P2 billion from the follow-on offering. “I would like to congratulate Phoenix Petroleum Philippines Inc. on its follow-on offering. The proceeds of this fund raising activity will support Phoenix Petroleum in its aggressive expansion program that includes the construction of additional retail stations nationwide and storage facilities in Cebu and General Santos,” said PSE chairman Jose Pardo during the bell-ringing ceremony.
Phoenix Petroleum is engaged in the business of trading refined petroleum products and lubricants, operation of oil depots and storage facilities , shipping, logistics and allied activities.
It mainly sells refined petroleum products through its network of 443 operating retail service stations as of end June 2015, carrying the “Phoenix Fuels Life” brand name.
The company also provides storage space for the Jet A-1 fuel supply of Cebu Pacific Airline for its Cebu, Kalibo, Davao, Cagayan de Oro, Cotabato, General Santos, Zamboanga City, Pagadian City, Butuan and Ozamis City flights.
Phoenix registered a net income of P727.4 million in the first nine months, up 53 percent from P474.8 million recorded in the same period a year ago.
Nine-month revenues, however, declined by 16.7 percent to P22.4 billion from P26.8 billion a year earlier.
The company managed to reduce its expenses to P21.7 billion, down 17.8 percent from P26.4 billion in 2014.