062107: Pushing IPO, Phoenix says it sees 56% profit jump

June 21, 2007
Updated 06:10:01 (Mla time)

Inquirer

MANILA, Philippines -- Oil storage and retailing firm Phoenix Petroleum Philippines Inc., preparing for an initial public offering (IPO) of stock, said Wednesday it was on track to reporting a net income of P116 million by yearend, based on trends from January to April.

Speaking to prospective investors, Phoenix Petroleum chief financial officer Teodoro Polinga said that would be a 56-percent rise from P74.2 million in 2006.

Polinga said the profit could be bigger new outlets the company would put up with proceeds of the IPO.

Phoenix Petroleum, based in the southern city of Davao and the bulk of its operations in eastern and southern Mindanao, will have its shares listed on the stock exchange next month. It will be the first independent petroleum player to do so since an oil industry deregulation law was passed in 1998.

The IPO consists of 36.25 million new and existing common shares at P6.08-P11.30. At that range, it could generate P176-P327 million.

“Net proceeds will be used by the company for capital expenditures and to increase its working capital,” Phoenix Petroleum said in a statement. “The company intends to establish terminal operations in other locations, expand its dealership network and services, as well as the necessary logistical requirements to support these activities.”

At the end of last year, Phoenix Petroleum had 20 retail service stations, taking about five percent of the southern Mindanao market. As of last March, it had eight new stations completed or under construction.

The company said it was finalizing negotiations to lease of two properties in Mindanao for use as oil depots and terminals to support an expansion to other regions of the country.

Phoenix Petroleum said it was the exclusive logistics service provider of Cebu Pacific Air in the cities of Cagayan de Oro, Davao and Cotabato, and that last year Asian Spirit also signed up with it.

 

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