Phoenix unloads Singapore unit
‘The said transaction is to be settled in cash as agreed by both parties. Furthermore, these funds will be used to shore up (our) working capital needs, particularly to purchase inventory for its B2B customers’
Daily Tribune‘The said transaction is to be settled in cash as agreed by both parties. Furthermore, these funds will be used to shore up (our) working capital needs, particularly to purchase inventory for its B2B customers’
Phoenix Petroleum Philippines Inc., led by Davao-based businessman Dennis Uy, let go of its 85 percent stake in PNX Petroleum Singapore Pte. Ltd. — a move that would help rechannel resources so the company can better support its core business.
The company informed the stock exchange on Monday that its board of directors approved the planned divestments through share buyback last 20 October.
"Phoenix Petroleum Phils. Inc. has divested its 85 percent stake in PNX Petroleum Singapore Pte. Ltd through a share buyback by PNX SG," Phoenix Sr. vice president Atty. Raymond T. Zorrilla confirmed in a text message.
"The said transaction is to be settled in cash as agreed by both parties. Furthermore, these funds will be used to shore up (our) working capital needs, particularly to purchase inventory for its B2B customers," he added.
PNX Petroleum Singapore is the trading and supply arm of Phoenix Petroleum that manages internal fuel requirements and establishes a Southeast Asian regional presence. It offers a wide range of refined products to serve customers — from retailers to ship-owners, from mining and transport companies to airlines.
Loss-making business
During the first half of the year, Phoenix Petroleum reported a translation adjustment loss of P24 million related to its operations in Singapore through its subsidiary, PNX Petroleum Singapore. It was a major turnaround from last year's gains of P308 million.
From January to June, Phoenix Petroleum logged a net loss of P2.066 billion, more than 3,200 percent wider than the P62.11 million a year ago.
Likewise, net loss attributable to the parent company reached P2.061 billion for the period, higher than the P120.81 million logged year-on-year.
Due to lower petroleum sales, the company revenues also plunged by 63.8 percent to P27.56 billion during the period from P76.19 billion last year.
