- Overall volume at record-high, up by 32% as growth in domestic fuel and LPG business strengthened
- EBITDA up 73% q-o-q in Q1 on record-high quarterly volume and continued cost and capital discipline
- OPEX per liter down 17%
- Net income up 9% q-o-q to P132 million in Q2
- Market share increased to 7.8% from 7.1% in Q1
Phoenix Petroleum recorded in the second quarter of 2021 its all-time-high quarterly volume, while maintaining prudence in OPEX and CAPEX management, accelerating the Company’s growth with EBITDA up 73% from the prior quarter to P1.07 billion. Revenues rose 38%, while OPEX per liter was down by 17%. Net Income was up 9% to P132 million.
Overall volume grew 32% from the prior quarter as the growth of the domestic business picks up pace. Domestic volume rose 27% q-o-q. Commercial, alongside other B2B segments, strengthened from the prior quarter as select industries such as manufacturing and trading drive the momentum. This was enabled by the Company’s excellent execution across the board from supply and marketing to support services. LPG likewise accelerated in Q2 on strong canister volume and as industrial LPG returns to growth. Meanwhile, the overseas business was up 37% q-o-q led by the growth in the Vietnam LPG business.
Recovery in retail has been slowed down by the continued challenges in mobility with the new spikes in COVID cases, the slower-than-expected rollout of the nationwide vaccination program, and the threat of new COVID variants. Station count in Q2 stood at 680.
“Our Q2 performance shows that our domestic growth is accelerating and we are solidifying our market positions as evidenced by the recent market share expansion. Despite challenges, we are able to continue to expand our network via a capex-light model, win new B2B accounts, and keep our costs in line,” Phoenix Petroleum President Henry Albert R. Fadullon said.
Phoenix Petroleum grew its market share to 7.8% from 7.1% in Q1, based on latest report from the Department of Energy. The same report showed Phoenix LPG expanding its market share from 6.9% to 7.2%.
The Company continues to deliver meaningful balance sheet initiatives with the continued debt reduction and successful refinancing of short term liabilities. These have enhanced liquidity and lengthened the Company’s debt maturity profile. In addition, last July 26 the Company settled P3.08 billion in Commercial Papers, which was partly financed by internally generated funds. Cash generation improved through active working capital management and shorter cash cycles.
“We are confident in our path to long-term, sustainable growth, and will continue to implement high-impact activities to further strengthen the Company’s fundamentals. We are encouraged and inspired to see progress over the past quarters with all the work the team has been putting in. With all these operational gains, we will probably see even more opportunities going forward,” Fadullon added.
