Debt-strapped Phoenix sees eventual recovery

MANILA, Philippines — Phoenix Petroleum Philippines Inc. of Davao-based businessman Dennis Uy is expecting a turnaround soon as it continues to finalize its debt restructuring activities.

The company said it is currently wrapping up talks regarding a liability management exercise to restructure its outstanding obligations while managing its current resources.

The move is a crucial step toward financial recovery and regaining market confidence, Phoenix informed the Philippine Stock Exchange yesterday.

“Once this is finalized, then we project the company’s eventual recovery and improvement, as we can already attract potential investors and working capital funding,” Phoenix said.

Phoenix has likewise committed to completing the long-delayed submission of its 2023 and 2024 audited financial statements (AFS), including relevant quarterly reports, before Oct. 31.

“Our new auditor has yet to release the AFS for 2023 and complete the audit fieldwork for the period ending Dec. 31, 2024,” the company said.

As previously disclosed, the oil firm said it still had no unappropriated retained earnings to pay dividends to its shareholders even after nearly three years.

This followed the company’s declaration of cash dividends of P18.92 per outstanding Series 4 preferred share from its unrestricted retained earnings in 2021.

The payout, originally slated for November 2022, was postponed in line with a strategy to “preserve resources to improve operations and ensure long-term sustainability of the business.”