Phoenix Petroleum Philippines Inc., a listed oil company, said Monday it is divesting from its Singapore-based oil trading arm, PNX Petroleum Singapore Pte Ltd.
The oil company of Davao-based businessman Dennis Uy told the Philippine Stock Exchange that its board approved the divestment which will be undertaken by selling back its shares to PNX Petroleum.
“The divestment is consistent with and pursuant to the liability management exercise in order to generate additional working capital to support core business operations,” Phoenix said.
Under its liabilities management exercise, Phoenix plans to adopt various strategies and could involve share buyback, tender offer, and exchange offers to reduce debt and support operating expanses
At the end of June, Phoenix reported total liabilities of P72.26 billion, with P48 billion considered as current liabilities. Its retained earnings stood at a deficit of P3.61 billion.
