Phoenix Petroleum Philippines Inc. said Friday it remains focused on strengthening its operations despite a tumultuous year of volatility in global oil markets, recessionary concerns amid record high inflation, peso depreciation, monetary tightening, and muted demand.
Phoenix said it exercised prudence in operating expenses and capital expenditures and enhanced productivity and efficiency across businesses, resulting in a 21-percent growth in per unit earnings before interest, taxes, depreciation, and amortization.
Its liquefied petroleum gas business, which grew 11 percent quarter-on-quarter, remained a bright spot in the portfolio. Domestic LPG volume grew 9 percent in the third quarter from a year ago and 8 percent from the previous quarter.
Overseas LPG recovered strongly from a weak second quarter, with volume rising 16 percent quarter-on-quarter and growing 3 percent year-to-date.
Phoenix said both businesses benefitted from robust underlying demand in the Philippines and Vietnam, adequately supported by working capital.
Domestic fuel volume was sharply lower in the third quarter, which resulted in the year-to-date EBITDA at 32 percent lower at P1.8 billion year-on-year.
“Recovery in fuels was further set back by the lack of scale driven by persistent challenges in liquidity and uncertainties in global markets and economic growth,” Phoenix said.
The company expanded its network through a capital-light strategy despite the difficult business backdrop.
Phoenix opened over 700 stations nationwide and is optimistic about better results as the business transitions to a more sustainable supply chain and logistics model to be able to scale up again to pre-pandemic levels.
“The focus remains on delivering quality products and services to our customers as we recover from the COVID-19 pandemic and continue to navigate the volatile markets,” said Phoenix Petroleum president Henry Albert Fadullon.
Phoenix Petroleum is engaged in the nationwide trading and marketing of refined petroleum products, including LPG and lubricants, operation of oil depots and storage facilities; hauling and into-plane services; convenience store retailing; and trading and supply.