Phoenix Petroleum Philippines said Monday it swung to a net income of P132 million in the second quarter from a P5-million net loss in the same period last year.
The company led by businessman Dennis Uy said net income on a quarter-on-quarter basis rose 9 percent from P121 million in the first quarter.
“Our Q2 performance shows that our domestic growth is accelerating and we are solidifying our market positions as evidenced by the recent market share expansion. Despite challenges, we are able to continue to expand our network via a capex-light model, win new B2B accounts, and keep our costs in line,” Phoenix Petroleum president Henry Albert Fadullon said in a statement.
Phoenix said in a disclosure to the stock exchange the better financial performance in the second quarter was driven by “all-time-high quarterly volume.”
The company maintained prudence in operational expenses and capital expenditure management, accelerating Phoenix’s growth with earnings before interest, taxes, depreciation and appreciation which went up 73 percent from the prior quarter to P1.07 billion.
Revenues rose 38 percent, while opex per liter was down by 17 percent in the second quarter.
Overall volume grew 32 percent from the prior quarter as the growth of the domestic business picked up pace.
Domestic volume increased 27 percent quarter-on-quarter driven by the growth of commercial, alongside other B2B segments such as manufacturing and trading.
Phoenix said the strong performance in the second quarter was also due to the company’s excellent execution across the board from supply and marketing to support services.
The liquefied petroleum gas or LPG segment accelerated its growth in the second quarter on strong canister volume and industrial growth.
Meanwhile, the overseas business went up 37 percent quarter-on-quarter, led by the growth in the Vietnam LPG business.
Phoenix said recovery in retail was slowed down by the continued challenges in mobility with the new spikes in COVID cases, the slower-than-expected rollout of the nationwide vaccination program, and the threat of new COVID variants.
Phoenix’s station count in the second quarter reached 680. The company grew its market share to 7.8 percent from 7.1 percent in the first quarter, based on latest report from the Department of Energy.
The same report showed Phoenix LPG expanding its market share to 7.2 percent from 6.9 percent.
“We are confident in our path to long-term, sustainable growth, and will continue to implement high-impact activities to further strengthen the company’s fundamentals. We are encouraged and inspired to see progress over the past quarters with all the work the team has been putting in. With all these operational gains, we will probably see even more opportunities going forward,” Fadullon said.