Phoenix Petroleum buys new oil tanker under unit Chelsea Shipping

Phoenix Petroleum Philippines is investing P242 million in newly-acquired Chelsea Shipping Corp. to buy a brand new tanker vessel.

 

In a disclosure to the Philippine Stock Exchange on Friday, the independent oil player said the 14,000 tanker vessel will supports the company's import logistics.

 

Phoenix Petroleum acquired 100 percent of Chelsea Shipping in a P1.4-billion share swap deal last October. In the transaction, Phoenix Petroleum issued 171 million common shares for 6.3 million Chelsea Shipping common shares to cover a  30-for-1 swap arrangement.

 

The acquisition of Chelsea Shipping was part of Phoenix Petroleum's strategy over product supply by having at its disposal a fleet of tankers to eliminate the risk of supply disruptions when availability of tanker vessels become scarce.

 

Phoenix Petroleum imports about 90 percent of its petroleum products from Singapore, China, and Taiwan.

 

In the nine months to September 2012, Phoenix Petroleum posted net earnings of P516 million, up 5 percent from a year earlier. Revenues climbed 19 percent to P24.9 billion on fuel sales growth of 24 percent in the same comparable period.

 

In the same disclosure, the company approved a P0.10 per share cash dividend and 30 percent stock dividend out its unappropriated retained earnings as of Dec. 31, 2012. — VS, GMA News