Phoenix Petroleum sets aside P500M for expansion

Listed Phoenix Petroleum Philippines Inc. will allot P500 million for its capital spending next year, as it expands its network and sets up oil warehouses, a top company official said on Thursday. Phoenix President Dennis Uy told reporters the bulk of the budget or P200 million will go to network expansion. The company is planning to set up 40 to 50 retail stations nationwide. The rest of the budget will be used to set up warehouses and other logistics operations. Uy said they might spend P3-P8 million on each station. The expansion will be focused in Luzon and Mindanao. The oil firm will get the budget from borrowings and its own cash. Phoenix operates 97 fuel stations in Mindanao alone. Uy said they hoped to tap other markets in Luzon, particularly in Metro Manila. Phoenix also has stations in Marikina and Fort Bonifacio. Phoenix started with only 20 stations when it listed its shares on the Philippine Stock Exchange in 2007. This year, Uy said, they expect to complete 22 stations, bringing the total to 120 by the end of the year. "We want most of our stations to be dealer-owned and dealer-operated compared to company-owned and dealer-operated because the rollout is faster," he said. Recently, the company got tax perks from the government for its Calaca depot project, which is expected to start operations this month. The oil depot has a capacity of 46 million tons. Phoenix will obtain its products from foreign oil companies and independent suppliers. Phoenix sells refined petroleum products, lubricants, chemicals and an array of car care products and accessories. It also provides services such as depot operation, storage and logistics. It was listed on the stock exchange in July 2007, the first oil company to do so since the industry was deregulated in 1998. The company's net profits for January to September increased more than sevefold to P589.4 million from a year earlier. — GMANews.TV