Phoenix Petroleum’s third quarter profit plunges on rising costs related to acquisitions
Davao-based businessman Dennis Uy’s Phoenix Petroleum saw its third quarter net income nosedive to P350.3 million from P841.3 million a year ago as expenses nearly doubled owing to a string of acquisitions.
Cost and expenses surged 85 percent to P24.16 billion, clipping the 81 percent growth in revenues.
The increase was attributed to higher product costs reflecting the global oil price movements as well as the imposition of excise teas on petroleum products starting January.
The independent oil firm’s earnings were dragged down by acqusitions. It purchased Philippine Family Mart from Ayala Land Inc. and SSI Group in January and took over digital payments platform Pos!ble.net
Phoenix reported other charges of P242.2 million, higher than the previous year’s P202.55 million.
Its convenience store retailing business, Philippine FamilyMart CVS has grown average daily sales by 21 percent driven by the launch of the Generation 2 store concept.
Phoenix opened 558 stations nationwide and continues to strengthen its position in commercial with key account wins in marine and road transport.
To cater to the expected growth in domestic tourism, it expanded its fueling services to 18 domestic airports.