Independent oil marketer Phoenix Petroleum Philippines Inc. is infusing an additional PHP507.93 million (USD9.4 million) in capital into three wholly owned subsidiaries to expand its oil depots and terminal facilities in the Philippines.
“The capital infusion shall correct capital deficiencies in the subsidiaries as well as for expansion of their respective operations,” Phoenix Petroleum said.
Phoenix Petroleum has set an aggressive expansion plan to strengthen its fuel retail network in the country.
Apart from expanding further its service station network, Phoenix Petroleum also plans to invest in its subsidiaries so as to expand its logistics by putting up additional depots and terminals in strategic locations in the country.
In 2007, Phoenix Petroleum acquired Phoenix Global Mercantile Inc. (PGMI), which is engaged in the importation and distribution of the Emarat brand of lubricants. It also invested in PFL Petroleum, which is engaged in the management of PTT retail stations in Luzon.
In 2012, Phoenix Petroleum then acquired Subic Petroleum Trading and Transport Inc. (SPTT), to expand its operations in the North-West and parts of Central Luzon, Bataan, Zambales, Pampanga and Tarlac, as well as establish its operations inside the Subic Bay Freeport Zone. Based in the Subic Freeport Zone, Subic Petroleum is engaged in the buying and selling, supply and distribution, import and export, storage and delivery of all types of petroleum for industrial, marine, aviation and automotive use. Subic Petroleum is entitled to tax and duty-free importation of raw materials, capital equipment and household and personal items for use within the Subic Bay Freeport Zone.
Phoenix Petroleum said it will invest PHP55.8 million (USD1.03 million) in Subic Petroleum Trading and Transport Inc., PHP429.63 million (USD7.94 million) in Phoenix Global Mercantile Inc. and PHP22.5 million (USD0.42 million) in PFL Petroleum Management Inc.
“We are enhancing our network, products, services, and promotions, all in support of our vision to be an indispensable partner to our customers. We are focused on delivering value and operational excellence as we aim to make Phoenix Petroleum a credible alternative to the bigger players,” says Phoenix Petroleum COO Henry Albert Fadullon.
Phoenix Petroleum has set a capital budget of up to PHP4 billion (USD74 million) to expand its fuel retail business, including service stations, oil depots, terminal facilities, and logistics.