Phoenix to build 100 retail stations in 2008

DAVAO CITY — New oil industry entrant Phoenix Petroleum Philippines, Inc. is putting up 100 new gas stations next year. Most of these stations, however, would still be in Mindanao, specifically the northern region where the company wants a strong presence. A company official said 20 of the new stations would be built in Luzon. Two years after it opened its first retail service station, Phoenix already has 28 existing stations, all in Mindanao, while 22 more are under construction and should be completed before yearend. Of the 28 stations, two are located in General Santos City and one station will soon open in Surallah, South Cotabato. These are Phoenix’s first attempt to penetrate the two provinces. The rest of its stations are in Davao Region, its home base, as well as in Maguindanao and North Cotabato. "Slowly, we are getting our own share in the market," George Nifras, Phoenix sales manager, said. "We are optimistic that with the significant increase in the number of refilling stations, we can also expect a significant increase in our market share," he added. The Phoenix official said the company had at least a 5% share of the southern Mindanao market as of December 2006, when it had 20 stations. Niche marketing He added that the firm hoped to bring Phoenix within arm’s reach of every Filipino consumer, up to the smallest towns that bigger competitors have ignored. "That is our competitive edge," he said. The General Santos City depot is expected to be completed by December this year, while a depot in Cagayan de Oro is due for completion by middle of next year. Homegrown Phoenix Petroleum Philippines, Inc., formerly Phoenix Fuels Life, started in the Davao Region as a family venture. It prides itself as the first homegrown major player in the petroleum industry. "Filipinos love the underdogs, and that will lead us to success. Phoenix is the underdog playing with those big boys," Mr. Nifras noted. The company conducted an initial public offer at P9.80 share price to raise funds for its expansion in July this year. Phoenix President Dennis Uy said the firm sold 29 million common shares. The company needed an estimated P150 million for expansion in terminal operations in the next two years and another P100 million for retail business. - Helen Grace C. Garcia/businessWorld