Phoenix Petroleum income jumps seven-fold to P589 million in 9 months

MANILA, Philippines - Publicly-listed Phoenix Petroleum Philippines Inc. posted a nearly seven-fold increase in its net income in the first nine months of 2009 to P589.4 million, from P80.3 million in the same period in 2008, due to a one-time gain on the purchase of a prime property.

Phoenix said P497 million of total income represented non-recurring income due to the booking of the “excess of fair value over acquisition costs”, or negative goodwill arising from its purchase of 100 percent of Bacnotan Industrial Park Corp. (BIPC) in March.

In the third quarter alone, the company posted a 15 percent rise in earnings to P38.2 million from P32.4 million in the comparative period last year.

Phoenix is now a registered industry participant with new investments in storage, marketing and distribution of petroleum products under the Downstream Oil Industry Regulation Act and, as such, continues to enjoy an income tax holiday for five years.

For the third quarter period, Phoenix generated total revenues of P1.39 billion or 10 percent lower than the 2008 level of P1.553 billion. This was brought about by lower average selling prices for the period despite the increase in service revenue.

The company generated P23.5 million in revenues from its fuels service, lease of its storage facilities and other service revenue in 2009.

In addition, it gained an additional P12.8 million revenue for the quarter from consolidating the performance of BIPC, its recently-acquired wholly-owned subsidiary.