MANILA, Philippines - Higher fuel sales carried Davao-based Phoenix Petroleum Philippines Inc. to post a 45-percent profit growth in the third quarter, the company said.
In a disclosure, the oil firm said its third quarter net income climbed to P252.4 million from P173.84 million a year ago.
Consolidated revenues, derived from fuel sales and service-related gains, rose 17 percent to P7.92 billion from P6.76 billion.
“The growth comes from the expansion of the independent oil company’s retail network and increase in sales from its retail, and commercial and industrial accounts,” Phoenix said.
In the nine months that ended in September, the oil firm recorded a five-percent earnings uptick to P516 million.
“Phoenix Petroleum posted a 19-percent growth in revenues to P24.9 billion in the first three quarters of the year compared with P20.9 billion in the same period last year,” the company said, adding that fuel sales surged 24 percent year-on-year.
Newly-acquired affiliate, Chelsea Shipping Corp., contributed 18.97 percent and 20.45 percent of the petroleum firm’s net income in the third quarter and the nine-month period, respectively.
“The original operations of the company without Chelsea Shipping generated a net income of P204.3 million for the third quarter,” Phoenix Petroleum said.
In July, Phoenix acquired Davao-based Chelsea Shipping for P1.42 billion to ensure efficient supply of oil for its gasoline distribution business.
The shipping firm has 10 vessels in its fleet, two of which serve the regional trade route of Taiwan to the Philippines.
The oil firm claimed it grew its share of the oil industry to six percent as of end-2011 from 3.2 percent a year ago based on sales volume.
As of end-September, Phoenix had 275 retail stations, of which 173 are in Mindanao, 21 in Visayas and 81 in Luzon.
Early this week, the company said it completed a P2.5-billion capital raising scheme through the issuance of corporate notes.
Phoenix said the funds will be used to expand its retail station network and refinance short-term debts.
Phoenix plans to double its service stations to at least 500 in the next five years through a nationwide expansion program.
The new retail stations will allow the company to maintain its position as the top independent oil firm in the country.