PHOENIX Petroleum Philippines, Inc. announced on Thursday a net income of P201 million in the second quarter, describing the gains as “its highest since the onset of the pandemic.”
“We had a difficult start this year, but we’ve gained some traction, and are seeing favorable results from our strategies. Improved margins and our sustained prudence are paying off, and we are in a better position to cultivate growth as the market further recovers,” said Phoenix President Henry Albert R. Fadullon in a press release.
The oil company did not include a comparative income figure from last year but it previously reported a net income after tax of P131.84 million for the second quarter of 2021.
Phoenix said it returned to profitability during the second quarter after recording gains from its overseas businesses and continued operating expense discipline.
In the first quarter, it reported a net loss of P262.68 million.
The company said it benefited from streamlining its operations and maximizing efficiency across the business as its operating expenses were lower by 10% quarter on quarter.
“We are glad to emerge from the second quarter stronger and are more determined to stay on the path to recovery. With the economy opening up, we are focused on improved inventory strategies and continued cost discipline to sustain our upward momentum,” Mr. Fadullon said.
The company also said that it continues to benefit “from its diversified portfolio of offers and markets.”
“The weakness on the domestic front has been made up for by its overseas business, which accounted for about 69% of consolidated volume in the second quarter,” it said in the media release.
Phoenix said that it continued to advance resource management initiatives and operational improvements while developing a new supply model “to navigate through the persistent volatility in the markets and foreign exchange.”
However, increases in the inventory costs and working capital limitations affected domestic fuels, it said, adding that rising selling prices in liquefied petroleum gas as well as higher inflation have resulted in soft demand for the product.
On Thursday, shares in the company slipped by P0.19 or 2.02% to finish at P9.20 each. — Ashley Erika O. Jose