17 January 2012

Phoenix Petroleum acquires Subic firm

LISTED OIL firm Phoenix Petroleum Philippines, Inc. has completed its acquisition of Subic Petroleum Trading and Transport Philippines, Inc., the company said in a disclosure to the bourse recently.

Phoenix Petroleum is looking to use the license to operate of Subic Petroleum inside the Subic Bay Freeport Zone.

“Pursuant to the separate approvals of the Board of Directors as well as the stockholders last January 28, 2011 and March 11, 2011, respectively, we would like to announce that the company has concluded the purchase of 100% of the shares of Subic Petroleum,” Phoenix Petroleum said in its disclosure.

Subic Petroleum “is engaged in the business of buying and selling, supply and distribution, importation and exportation, storage and delivery of all types of petroleum for industrial, marine, aviation and automotive use.”

Phoenix Petroleum announced its plans to acquire Subic Petroleum in February last year.

“The company is actually a small firm which has no physical assets and we paid around P2 million for the acquisition. Our primary objective in the purchase is the license to operate in the Subic Bay Freeport and service locators in the area that our other depots cannot service,” said Phoenix Petroleum Chief Finance Officer Joseph John L. Ong in a telephone interview with BusinessWorld.

He added Phoenix Petroleum wants to provide petroleum and fuel to industrial locators in the area and there are no plans to build retail service stations so far.

It acquired the firm at a price of P800 per share for a total of 2,500 shares held by Subic Petroleum’s former owners.

The company said funding for the purchase “is sourced primarily from internally generated funds.”

Phoenix Petroleum’s net income from January to September 2011 rose 61% to P416.7 million from year-ago levels of P258.5 million.

The growth was attributed to stronger revenues from “the expansion of the independent oil company’s retail network and increase in sales from its retail and commercial accounts.”

Revenues of the company increased by 111.4% to P20.7 billion in the nine-month period ending September compared to P9.8 billion in the same period in 2010.

Phoenix Petroleum currently has a network of 198 stations at the end of September from 161 stations at the end of 2010. Majority of the stations are located in Mindanao with eight in the Visayas and 48 in Luzon.

Shares of Phoenix Petroleum remained unchanged at P11 apiece. (Emilia Narni J. David, BusinessWorld)