Phoenix Petroleum issues P1.26-B STCP

MANILA, Philippines - Phoenix Petroleum Philippines Inc. issued yesterday P1.26 billion worth of short-term commercial papers (STCP).

In a disclosure to the Philippine Stock Exchange, Phoenix Petroleum said the issuance, will have a maturity period of 123 days or until Feb. 22, 2016.

The STCP will bear an interest rate of 3.75 percent, it added.

The latest STCP was re-issued under the second tranche of its previous issuance worth P3.5 billion in total, or P2 billion for the first tranche and P1.499 billion for the second tranche, which matured last Oct. 13.

The company has been raising funds to support its ongoing network expansion.

Starting with five stations in 2005, Phoenix Petroleum has 443 stations as of end-June, making it the biggest independent oil player in the Philippines.

Its aggressive network expansion resulted in a 4.1 percent share of the total market as of end-2014.

Phoenix Petroleum’s businesses include trading, terminaling and hauling, as well distribution of lubricants and chemicals.

It netted P425 million in the first half of 2015, up 5.82 percent from P401 million in the same period in 2014 despite the decline in oil prices since the middle of last year.

The company attributed the growth in profit to the improvement in sales mix and higher efficiency in its trading and supply management amid the 40 percent drop in fuel selling prices.