Phoenix Petroleum Philippines, Inc.
ayos hinila pataas ah, wala pa kong pandagdag para dito, saying un 10.68
This article discuss about the Philippines Pheonix Petroleum Incorporation its background and history its trading conditions and the position on the stock exchange so that the potential investors will be already aware of the company before investing in this one. Thank you for this keep it up.

Phoenix Petroleum plans more fund-raising activities in 1st half

PHOENIX PETROLEUM Philippines, Inc. is looking to raise P5 billion by the first half of next year apart from the remaining P3 billion in short-term commercial papers that it is considering to issue around the same period, company officials said on Thursday.

“[The] P3 billion is still for short-term requirements, basically working capital. So we’ll just take advantage if the benchmark rates go down then probably we will [issue the remaining commercial papers],” Ma. Concepcion F. De Claro, Phoenix Petroleum chief finance officer, told reporters after the listing of the company’s P7-billion debt instruments on Thursday.

The initial offer is part of the P10-billion commercial papers that had been approved by the Securities and Exchange Commission. Its size is in two series, with Series A-1 at P3.5 billion set at a maturity of 180 days at a discount rate of 7.0937%. Series A-2 commercial papers at P3.5 billion are for 360 days, and have a discount rate of 7.4717%.

The proceeds will be used to refinance existing short-term loans of the issuer, which were used to finance working capital requirements for fuel importation, the company previously said.

“We’re trying to fix that up because there are some maturing loans. We’ll just replace them — basically just shorter six months to a year,” Ms. De Claro said.

She said the discount rates for the first tranche have a spread over existing benchmark rates of 6.75-7%.

“We hope [rates] to be lower again about 6-6.5%,” she said. “There’s always a spread, the spread is very reasonable. We got good rates in terms of the spread. So we’re hoping [in] the next issuance interest rates will go down,” she added.

Asked about the possible listing of the remaining P3 billion, Ms. De Claro said it will be by mid-2019.

She noted the decision of the Bangko Sentral ng Pilipinas not to raise interest rates recently was “a good sign.”

Ms. De Claro said the company was looking to raise P5 billion more through an offering next year for long-term capital requirement. The possible issuance follows the private placement of 2 million preferred shares for P2 billion or P1,000 per apiece.

Joseph John L. Ong, Phoenix Petroleum treasurer and head of corporate finance, said the private placement was with RCBC Capital Corp., issue manager and underwriter.

“Who they sell it to we don’t know and we don’t care. It’s not anymore our problem. But they got the whole thing,” he said.

Proceeds of the private placement will be used for capital expenditure, the company officials said.

Mr. Ong said they have yet to determine the exact issuance date of the bigger offering, although they are targeting it by the first half.

“The P5 billion actually is not yet final, that has not been filed yet so we’re thinking about it,” he said.

The decision on the issuance would depend on the market and rates, Mr. Ong added.

“Kasi like alam naman natin the last couple of months talagang volatile ‘yung market. (We know in the last couple of months, the market has been really volatile) So even a lot of issuers opted to defer to next year,” he said.

Phoenix Petroleum’s listing on Thursday was the last for the year at the Philippine Dealing & Exchange Corp. (PDEx).

“We shall finish this year with a total of P256.39 billion in new listings, representing a 24% increase from last year’s figures,” said Ma. Theresa B. Ravalo, officer-in-charge of the PDS Group, the exchange’s infrastructure provider.

She said the total outstanding amount of bonds listed or enrolled in PDEx is expected to reach P1.045 trillion in 2018, 32% higher than in 2017. 



Phoenix Petroleum on track to hit income target

PHOENIX Petroleum Philippines, Inc. said it expected to hit its P1.5-billion income target for 2018, with its new businesses driving growth and continuing to do so in 2019, the company’s finance chief said.

“I know that we’ll be able to hit our target — we’re tied on P1.5 [billion],” said Ma. Concepcion F. De Claro, Phoenix Petroleum chief finance officer, in an interview late last month.

In 2017, the Davao City-based independent oil company posted record sales volume, revenues and net income as its investments through the years started bringing in returns, it previously told the stock exchange.

Net income hit P1.79 billion in 2017, up 65% from the level a year earlier, with the partial consolidation of the liquefied petroleum gas (LPG) business starting in August 2017.

“We’re already P1 billion as of September [2018] — P1.1 billion,” Ms. De Claro said.

“We think we’ll be able to hit it [P1.5 billion]. We were hoping that it would surpass significantly our target but since crude prices have been going down the last couple of months since September it’s actually going to eat up on our margins,” she added.

Ms. De Claro said the biggest driver of company’s growth is its Singapore office PNX Petroleum Singapore Pte Ltd., which was set up in September 2017 as the group’s trading and supply office.

In October 2018, PNX Energy International Holdings Pte Ltd. was also created to manage the group’s international investments, including expansion of related business activities and operations in the Asia-Pacific region.

“The contribution of our Singapore office… net income-wise [as of] September was about P200 million, that’s about a little less than 10%,” she said.

“We started operations lang December, but medyo nag-full blast this January. And then the LPG also because that’s also new,” she added.

For 2019, Phoenix Petroleum plans to expand the Singapore trading business, Ms. De Claro said.

“We’d like to expand it, but currently what we’re doing is also expanding, getting more lines kasi (because) we’d like to be able to sell more to third parties, not only Phoenix Singapore addressing the requirements of Phoenix Philippines,” she said.

“But we’re limited by the lines — our credit lines,” she said. “So with that, if we are able to get more lines then we can expand the business. If we double the lines from last year, it would be able to double the contribution, but of course that’s considering that crude prices are stable — no abrupt change to the price,” she said.

Liquid fuels remain the company’s main business, with sales from diesel, gasoline, bunker fuel, lubes and aviation fuel accounting for the biggest share of the company’s revenues.

“That was before. Then we expanded in 2017 [we acquired] LPG… Now we have the trading, which is in Singapore, and then we’re going to have the asphalt and the bitumen, and then the last one is LNG (liquefied natural gas). But outside of that we have the convenience retailing,” she said.

In January 2018, Phoenix completed the purchase of the Family Mart convenience store brand, which had 67 outlets in Luzon at that time.

Ms. De Claro said liquid fuels remained the biggest contributor for 2018 and possibly beyond, although sales volumes for the other businesses are also expected to expand.

“It’s going to be same [in 2019],” she said, adding that the total would just expand for the various business segments.

However, the convenience stores, now numbering 71, have yet to contribute “significantly” to the group.

“We’re still trying to fix up a lot of things,” she said, adding that what Phoenix Petroleum is targeting for the Family Mart business is to be “cash positive.”

Ms. De Claro said Family Mart is still expected to incur some loss, but she hopes it would generate a profit in 2019.

“If we can get, say, a 2%-3% [growth in] revenues then that should be fine with us… Probably if we can hit mga P50 [million] to P100 million that’s already substantial [for] our Family Mart but insignificant as far as the contribution to the bottomline,” she said.



Dennis Uy-led firm, CNOOC get go-signal for LNG terminal

PHOENIX Petroleum Philippines, Inc. looks to break ground for its liquefied natural gas (LNG) facility with partner China National Offshore Oil Corp. (CNOOC) this year, after securing the energy department’s go-signal.

In a statement issued Friday, Phoenix Petroleum said Tanglawan Philippine LNG Inc., its joint venture firm with CNOOC, has been granted the notice to proceed by the Department of Energy (DOE) to build an LNG terminal in Batangas.

With the approval, Tanglawan will start construction for the regasification and receiving terminal with a capacity of 2.2 metric tonnes per annum (mtpa). Commercial operations are set to start in 2023.

Tanglawan also targets to develop a gas-fired power generation facility with an installed capacity of up to 2,000 megawatts in the long term. The facility seeks to support the demand for a clean, low-cost, and environment-friendly energy source in Luzon.

CNOOC and Phoenix Petroleum partnered for the project last year after the DOE issued a circular on the Philippines Downstream Natural Gas Regulation in 2017. This outlined the rules governing the downstream natural gas industry.

Tanglawan is also in the middle of negotiations with CNOOC Gas and Power Group Co., Ltd., China’s largest LNG importer and terminal operator, alongside Phoenix Petroleum for a possible joint venture.

Other companies that have proposed to develop an LNG terminal include First Gen Corp and its Japanese partner Tokyo Gas Co., Ltd., Australia’s Energy World Corp. Ltd. (EWC), and US-based firm Excelerate Energy L.P.

EWC was the first to secure the DOE’s go-signal last Jan. 2, allowing it to start construction for an LNG import terminal and regasification facility on Pagbilao Grande island in Quezon province.

The DOE had earlier accepted letters of intent from 18 firms for LNG project, namely Cleanway Energy Development, First Gen Corp., Tokyo Gas Co. Ltd., CGN New Energy Holdings Co. Ltd., Philippine National Oil Co., VIRES Energy Corp., DeEnergy International Corp., SK E&S Co. Ltd., Carmine Energy Pte. Ltd., Transformation Llc., Limay LNG Power Corp., Kepco E&C, Atlantic Gulf & Pacific Co., Osaka Gas Co. Ltd., Lloyds Energy, PhiLNG Ltd. and BKB Consortium.

The deparment has encouraged firms to build an LNG facility as it expects the depletion of the Malampaya gas to start by 2024.


-- ilipad mo na please

Phoenix Petroleum in talks with PNOC for ‘strategic alliance’ on LNG hub
This company might be a good stock pick, but I have stopped investing in oil companies. They are so dependent on general oil supply, which is under control of OPEC. This fact is affecting their flexibility and ability to be resilient to market shocks
I am sort of agree with the last poster here, but I still will think that oil market will be on the rise, it's simply fluctuations of everything else just with oil. I do remember the times when in eastern europe it was something like for example $120 per barrel or so.
I think that OPEC has made a very good move by extending the production cuts. The oil has to remain stable in order to make sure that the other markets also say in tact. The non-OPEC members have supported the decision of OPEC which is a good sign of unity.

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