Phoenix Petroleum Philippines Inc., the listed oil company of businessman Dennis Uy, reported Friday a wider net loss in the third quarter as sales declined, operating costs rose and financing charges ballooned.
The largest independent oil player in the country reported net loss of P1.62 billion in the July-September quarter, wider than the P948.6 million loss in the same period of 2022.
Sales for the quarter dropped 36 percent year-on-year to P15.25 billion while cost of sales and operating expenses total P15.74 billion while financing cost was up 11 percent at P998.1 million.
In the nine months through September, Phoenix saw net loss widen to P3.68 billion from P1.07 billion.
Despite the losses, economic setbacks and lingering effects of the pandemic, Phoenix still see positive signs of recovery, particularly in its liquefied petroleum gas, terminal service and asphalt businesses.
It said the LPG business recorded a 57 percent growth in earning before interest, taxes, depreciation and amortization, or EBITDA, during the third quarter on the back of prudent cost management, an 11 percent volume growth and a 41 percent increase in margins.
Phoenix said its terminal service has made headway in 2023, bringing in additional revenue from leasing out fuel storage this year, compared to the previous year when it was tagged purely as a cost center. It added that storage is close to 50 percent leased at the end of the third quarter and is expected to rise to 70 percent by year end.
Phoenix Asphalt also contributed to the company’s performance this year with year-to-date volume growth of 16 percent while gross margin rose 21 percent.
“The improvement in the third quarter is the product of the team’s resilience, hard work, and discipline despite the challenges of the year 2023. We have diversified our income streams with our terminaling business, and continue to strengthen the other businesses under the Phoenix umbrella,” Phoenix president Henry Albert Fadullon said.
Recovery in the retail business has been slowed by price volatility, high interest rates, and capital constraints.
“Despite difficulties, we are confident in our path to long-term, sustainable growth, and will continue to focus on improving and implementing high-impact activities to further sustain our path to recovery,” Fadullon said.
