Phoenix Petroleum halts importation of diesel, gasoline

PHOENIXFUELS.PH

PHOENIX Petroleum, Inc. has temporarily halted the importation of diesel and gasoline since March last year, the listed oil company said on Monday.

In a clarification, the company told the stock exchange that it prefers buying domestic fuels over imported ones.

“This way, it allows the company to manage its resources as well as reduce and manage risks due to inventory losses. Nonetheless, should trading conditions change, the company will evaluate its supply approach and strategy,” Phoenix said.

The company incurred a net loss of P3.68 billion in the first nine months of 2023, a wider figure compared to the P1.07-billion net loss in 2022.

Revenues declined by 57.2% to P42.8 billion from the previous P99.92 billion.

The company attributed the decline to a 46.8% decrease in the total volume sold, which amounted to 1,156 million liters, compared to the 2,177 million liters in the previous year.

The company is considering entering into a sale-and-leaseback agreement with BDO Unibank, Inc. to restructure its debts, it said during its annual stockholders meeting in October.

The proposed deal involves some of the company’s assets such as terminals, depots, and retail stations, which the company could repurchase within three to five years from the time of sale.

Shares of the company declined by 20 centavos or 4.17% to close at P4.60 apiece. — Sheldeen Joy Talavera

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