DECLINING world oil prices dragged Phoenix Petroleum Philippines Inc.’s (PPPI) net income causing it to drop 33 percent in the first half of the year.
In a disclosure to the Philippine Stock Exchange, PPPI said net income was lower at P206 million from P305 million in the same period last year. Revenues grew by 21 percent to P17 billion from P14 billion.
This growth in revenues was attributed to the 19-percent jump in sales volume of refined petroleum products as well as higher earnings from fuels service and storage, thanks to its expansion in retail network and increase in sales from retail and commercial accounts.
As of June, Phoenix Petroleum said it has a network of 255 retail stations from 190 stations a year ago.
Raymond Zorrilla, PPPI assistant vice president for external affairs and human resources, earlier said the company is looking at putting up more than 100 stations all over the country this year. Of this number, 43 will be in Luzon, 20 in the Visayas and 40 stations in Mindanao.
“We have invested a lot in branding. We have a vision to be leading independent, cement our status as leading independent player both in terms of network share and market share,” he said.
Zorrilla said the expansion program could entail more than P500 million, which will be sourced from a combination of internally generated funds and loans.
He noted that they expect a 25-percent rise in retail volume with this expansion program.
The company is also putting up new depots in Iloilo, Bacolod and Cebu this year, while the existing ones in Davao and Batangas are being expanded.
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