Phoenix Pet, Cebu Pac renew fuel supply deal

MANILA, Philippines - Phoenix Petroleum Philippines and Gokongwei-owned Cebu Pacific have renewed their agreement for a jet fuel supply contract.

In a disclosure to the Philippine Stock Exchange, Phoenix said both parties have again renewed their Jet A-1 fuel supply and fuel handling services agreement for multiple locations.

Specifically, the agreement covers contracts for Jet-A1 fuel supply in Subic as well as fuel storage, handling, and into – plane services in Mindanao, Aklan and Cebu for five years.

The agreement also covers fuel barging services for five years through Phoenix’s wholly-owned subsidiary Chelsea Shipping Corp.

Last year, both parties signed a 10-year renewable supply contract for the province of Cebu. It was also last year that both companies marked a decade of partnership.

The oil company is the dominant supplier of Jet A-1 fuel to Cebu Pacific nationwide. It  provides Jet A-1 fuel storage, handling, barging, bridging and into – plane services to the airline company.

The listed oil company has a retail station network of 418 stores at the end of 2014 from 368 stations in 2013. Of the total, 221 are in Mindanao, 56 in Visayas, and 141 in Luzon.

It is engaged in the business of trading refined petroleum products and lubricants, operation of oil depots and storage facilities as well as shipping, logistics and allied services.

The company posted a net income of P616 million last year from P665 million in 2013, a decline of seven percent.

 “However, in line with the company’s strategy to focus on more profitable sales, 2014 return on sales improved to 1.8 percent coming from 1.5 percent in 2013,” Phoenix said.

Cebu Pacific, meanwhile, is the largest domestic airline operator in the country, flying to 24 international and 33 domestic destinations. It is the sixth largest low-cost carrier in the Asia-Pacific region.