Phoenix Petroleum Philippines Inc. said Thursday it cannot issue dividends for any class of shares, as it did not achieve retainable earnings in the past years.
“As of the moment, there are no retainable earnings and hence, the company is unable to declare and pay out any cash dividends for any class of shares,” Phoenix said in its reply to the Philippine Stock Exchange when asked about the status of its dividends to shareholders.
“The company is still focused on managing its current resources and prioritizing its operations and working capital to fulfill its obligations to its suppliers, creditors and shareholders, “ Phoenix said.
The PSE asked Phoenix about the declaration of cash dividends for preferred shares series 4 (PNX4) for the years 2023 and 2024 and the declaration of cash dividends for PNX3B.
Phoenix said that for the period ended Dec. 31, 2022, the company reported a deficit in its audited financial statements.
It said external auditors were still in the process of auditing its AFS for the period ended Dec. 31, 2023.
“The company notes that the dividends of the company’s preferred shares, PNX4 and PNX3B, are cumulative in nature such that missed payments of dividends will accrue to the shareholders,” Phoenix said.
“Therefore, the company continues to remain committed to our obligations while we are still finalizing our strategies,” it said.
Phoenix temporarily halted its importation operations of diesel and gasoline in March 2023 over price volatilities in the world market.
Phoenix said the company found it more favorable to buy domestic fuels than imported fuels.
“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 debts. 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 also divested its investments in PNX Petroleum Singapore Pte. Ltd (PNX SG) and planned to use the over the P1-billion ($19.2 million) proceeds for working capital.