Phoenix Petroleum to issue P3.5-B STCPs

MANILA, Philippines – Phoenix Petroleum Philippines Inc. obtained the Securities and Exchange Commission’s approval to issue up to P3.5 billion worth of short-term commercial papers.

Short-term CPs are debt papers issued by corporations with a maturity of less than a year. Proceeds are usually used to finance short-term liabilities.

The debt papers will be issued in three tranches.

“The company intends to use the proceeds from the offer for working capital purposes. Proceeds will be used to finance regular importation of fuels and lubricants.

Phoenix intends to do at least three importations of petroleum products every month from January to March using the proceeds of the debt sale.

The oil company successfully raised P2 billion from its follow-on offering.

Phoenix reported a 50 percent jump in net profit to P758 million in the first nine months of the year,  driven by a 29 percent growth in sales volume of petroleum products.

Retail station sales grew 33 percent while its commercial, industrial and aviation sales went up  27 percent.

As of the end of September, the company’s retail station network grew to 447 from 418 stations a year earlier.

Of these, 222 are based in Mindanao, 62 in Visayas, and 163 are in Luzon. At least 3.5 million vehicles visit the Phoenix retail network monthly, data from the company showed.