CEBU, Philippines - Publicly-listed independent oil company Phoenix Petroleum Philippines, Inc. (PNX) targets to open 100 more branches across the country within the year in addition to its 400 existing stations nationwide.
Out of the 100 stations planned for 2014, 36 will be in the Visayas region of which 12 will be built in Cebu.
At present, there are seven stations in the province that are currently under construction while five more branches will be added within this year.
PNX intends to end the year by having a total of 62 newly-opened and existing outlets in the region.
This was announced by PNX vice president for external affairs-business development Atty. Raymond Zorrilla during the opening of the 11th station in Cebu located along UN Avenue in Barangay Umapad, Mandaue City.
Zorrilla shared that the Davao-based oil company is bullish with its aggressive expansion in the country taking into account the increasing demand of the market for affordable and high-quality fuel.
“We went around the country and found that the market is not saturated yet. The opportunity is there and we saw the need to expand in the market,†he said, adding that they also invest heavily on brand and marketing strategies to penetrate the Philippine market.
Although he preferred not to disclose the company’s capital expenditure for its expansion plans, he explained that the investment depends on the type, size and location of the station.
He cited that a company-owned, dealer-operated station usually requires P5 million to P6 million while a dealer-owned, dealer-operated franchise calls for an investment from P3 million to P4 million.
He further noted that a gasoline station franchise is one of the most viable franchise products since it is a fast-moving commodity barring price war and stiff competition in the industry.
He added that it is also allows the franchisee to earn faster ROI that could be achieved at two to three years. A gasoline retail station is mostly franchised by young professionals and overseas Filipino workers.
The largest PNX station in Cebu located in Barangay Umapad is the company’s second station in Mandaue City and the first venture by the Hayco Fuel Enterprise headed by its general manager and PNX dealer Erika Hayco.
The 1,200-square meter station is a company-owned, dealer-operated franchise valued at over P10 million, exclusive of Phoenix products.
Hayco said that the newest station shall contribute a positive boost in the booming economic activity of Mandaue and the entire province.
The PNX station also houses a local homegrown convenience store named as Fastbreak and a Port Express cart that will offer lechon belly to customers. The family of Hayco also owns the Port Seafood Restaurant and Beverly View Events Pavilion in Lahug.
PNX is engaged in the business of retail and commercial sales and the trading of refined petroleum products and lubricants, operation of oil depots, storage and transport services and integrated logistic services. Its products and services are distributed and marketed under the PHOENIX Fuels Life trademark.
PNX reported a 27 percent increase in terms of consolidated revenue as of September 2013, reaching up to P31.7 billion that is higher than the P24.9 billion in the first three quarters of 2012. Such growth was attributed to the 32 percent increase in fuel sales volume during the year.
It also increased its net income by five percent to P541.3 million in 2013 from P515.7 million on the same period of last year with its earnings per share from Php0.38 in 2012 to P0.37 in this year.
Based on the first half 2013 Oil Supply/Demand report of the Department of Energy, PNX accounts a 7.2 percent market share of the total industry.
“Our first retail service station was opened in 2005 in the southern part of Davao. We started with a zero percent market share but PNX ranks as the 34th in the country’s Top 10,000 Corporations,†Zorrilla said last Friday. — (FREEMAN)