Phoenix Petroleum shares surge 43% in PSE debut

Shares of Davao-based oil firm Phoenix Petroleum Philippines Inc. soared by as much as  43 percent on its market debut yesterday, helped by strong interest from local retail investors.

Phoenix, the third company to go public this year and the first independent player to list since the country’s oil industry was deregulated in 1998, opened at P14 and closed at P12.75 per share, compared with its initial offer price of P9.80 each share.

“This only goes to show the strong interest the investing public has in our company.  We are the first oil player to list after Petron,” said Dennis Uy, president and chief executive officer of Phoenix.

He said the company raised about P284 million from the maiden offering of its shares to the public.  About P150 million of the total proceeds will be used to invest in terminal facilities and depots as well as expand the company’s network of retail service stations.

He said Phoenix plans to expand its operations in selected areas in Luzon and Visayas.

Phoenix is engaged in the trading of refined petroleum products and the operation of oil depots and storage facilities in Southern Philippines. Its products and services are distributed under the “Phoenix Fuels Life” brand.

From only one gas station in June 2005, Phoenix now has more than 20 retail service stations and the number is expected to increase to 50 by yearend.

Uy said the firm is targeting to put up 40 retail stations every year until 2010 as it seeks to become one of the major players in the industry.

It has earmarked P250 million over the next two years for the continued expansion of its facilities.

Phoenix chief financial officer Ted Polinga said the company is in talks with a group of local banks for a possible loan of as much as P900 million to allow them to continue rolling out new service stations and depots.

He said the company is eyeing a net income of P144 million by the end of the year and expects this to grow further to P280 million and P320 million in 2008 and 2009, respectively.

Last year, Phoenix posted a net profit of P74.27 million from a mere P3.72 million in 2005. Total revenues reached P1.49 billion compared with only P680 million, largely due to substantial increase in sales of petroleum products and income from fuel and storage. 

The company registered with the Board of Investments on Nov. 2005 as a new industry participant with new investments in storage, marketing and distribution of petroleum products.

Among its clients include Cebu Pacific and Asian Spirit as well as foreign suppliers PTT Thailand and Emarat Lubricants, one of the top 10 petroleum companies in the region and one of the Gulf region’s leading petroleum product manufacturers, respectively.