Taguig—(PHStocks)—Phoenix Petroleum Philippines Inc. (PSE: PNX) announced today a consolidated net income of PhP507 million from a revenue of PhP26.9 billion. Net income is lower by 7% compared to the PhP541 million reported in the third quarter of 2013.
The decline in income was brought about mainly by the continuous downward trend of petroleum products’ prices in the global market.
As of September 30, 2014, year-to-date total adjustment for petroleum products stood at a net decrease of PhP4.30/liter for diesel and PhP2.32/liter for gasoline, according to the Department of Energy.
The decline in volume and revenue is a direct result of lower commercial sales (i.e. distributors), which is consistent with the company’s strategy to put more emphasis on margins. This was mitigated by the faster growth in retail sales volume versus commercial sales. The higher contribution of retail sales volume to overall sales volume resulted in an improvement in gross margins to 8.5% this year from 7.15% last year.
This was driven primarily by the Company’s continuously expanding retail station network. After ending 2013 with 368 stations, the company’s network reached 412 stations as of September 30, 2014. Of these stations, 221 are based in Mindanao, 56 in Visayas, and 135 in Luzon.
The company continues to focus more on the retail segment expansion including its non-fuel related business. Currently, Phoenix has more than 100 locator businesses in its retail sites. The system welcomes more than 5 million vehicles per month, thereby resulting in around 8% in growth in same store sales. Retail volume improved to 31% of the total fuel sales this year as against 24% compared to same period of 2013.
At the same time, sales to industrial accounts, primarily to the shipping, fishing, mining, power and transportation sectors, registered a continuous growth during the year. Phoenix Petroleum supplies more than 50 percent of Cebu Pacific’s jet fuel requirements and handles all their logistics needs in Mindanao and part of Visayas.
Its subsidiary, Chelsea Shipping Corp., expanded its fleet to 11 tanker vessels, when it took delivery of the 146-meter M/T Chelsea Donatela. The new vessel and its sister ship, MT Chelsea Thelma are the largest Philippine-registered oil tankers with a capacity of 14,000 DWT each. This increases the total capacity of Chelsea Shipping Corporation to 44,368 MT. Both vessels will serve the regional shipping requirement for petroleum products. Chelsea Shipping is one of the top five petroleum tanker owners in the country, serving Phoenix Petroleum, Cebu Pacific Air, and National Power Corporation, among other companies, and sailing on local and regional seas.
Phoenix Petroleum is the number one independent and fastest growing oil company today with an expanding network of operations nationwide. It is engaged in the business of trading refined petroleum products and lubricants, operation of oil depots and storage facilities, shipping/logistics and allied services.