Phoenix optimistic on recovery this year

May 14, 2023 | 12:00am

MANILA, Philippines — Phoenix Petroleum Philippines Inc. of Davao-based businessman Dennis Uy is bullish on its recovery this year after a challenging 2022.

The independent oil player said it narrowed its revenue loss in the first quarter, setting the company on the path to recovery.

Phoenix said it is benefiting from the company’s diversified portfolio as its overseas businesses in Singapore and Vietnam, and its LPG arm delivered encouraging numbers.

“Despite a challenging 2022, Phoenix remains optimistic about the current year,” the company said, citing an 87 percent improvement in its operating income in the first quarter from the previous quarter.

Phoenix LPG Philippines Inc., the company’s domestic LPG arm, saw its net income for the first quarter balloon to P45.3 million from P800,000 in the same period last year.

Phoenix said the business continues to prove its resiliency despite price volatility and inflation.

While volumes stayed relatively flat year-on-year, the company said it was able to increase gross margin, capitalizing on inventory gains during the period.

In addition, Phoenix said it operated more efficiently by further lowering its selling and administrative expenses in the first quarter, resulting in an EBITDA of P176 million, which is 15 percent higher than the same period last year.

“Our momentum was disrupted just as we were seeing the light at the end of the tunnel in the beginning of last year,” Phoenix president Henry Albert Fadullon said.

“But despite 2022 being a challenging period, we continue to power through the setbacks, remaining hopeful and optimistic as we stay on the path towards recovery. Moving forward, our focus remains on efficiency to further strengthen the business, and deliver value to our stakeholders,” he said.

Phoenix opened a total of 19 new stations last year, bringing the total number of outlets to 700 by the end of the year.