Phoenix Petroleum and Chelsea Logistics incur wider Q3 net loss

PHOENIX PETROLEUM Philippines, Inc. incurred a net loss of P1.62 billion in the third quarter (Q3), wider than its P948.61 million loss in the same quarter last year, amid lower revenues.

Its gross revenues sank by 35.8% to P15.25 billion from last year’s record of P23.74 billion, the listed independent oil firm said in its quarterly financial report disclosed on Wednesday.

For the July-September period, revenues from the sale of goods declined by 36.5% to P14.7 billion from P23.14 billion a year ago.

Fuel service and other revenues were slightly down by 0.3% to P507.21 million while rent income slid by 51.4% to P42.07 million.

The third quarter’s net loss brought Phoenix’s nine-month losses to reach P3.68 billion, or more than three times the P1.07 billion suffered in the same period in 2022.

From January to September, the company’s topline stood at P42.80 billion, lower by 57.2% from the P99.92 billion posted last year.

The company attributed the decline to the 46.7% decrease in total volume sold at 1,156 million liters versus the 2,177 million liters last year.

It said the decline in domestic volume was a result of the implementation of its Third-Party Supply Model or 3PS where a third party supplies the oil firm’s retail requirements directly and in return, the company earns service income.

During the three quarters, revenues from its sale of goods in the Philippines went down by 69.9% to P10.45 billion from last year’s P34.67 billion.

Sales revenues also dropped in Singapore and Vietnam, sinking by 53.5% to P27.88 billion and 21.9% to P2.85 billion, respectively.

For its depot and logistics segment, revenues during the period rose by 2.5% to P1.61 billion from P1.57 billion last year.

Real estate revenues increased 41.2% to P12.82 million from last year’s P9.07 million.

Phoenix said last month that its board of directors had approved its divestment from its trading and supply subsidiary PNX Petroleum Singapore Pte. Ltd., in which it held an 85% stake as of September, via a share buyback.

The company explained that the move was aimed to “generate additional working capital to support core business operations.”

It also announced that it was looking at entering into a sale-and-leaseback agreement with BDO Unibank, Inc. to restructure its debts.

Assets involved in the proposal are some terminals, depots, and retail stations.

At the local bourse on Wednesday, shares of the company went down by P0.83 or 13.88% to close at P5.15 apiece.

CHELSEA LOGISTICSChelsea Logistics and Infrastructure Holdings Corp. recorded a net loss of P613.52 million in the third quarter, wider than the P489.14 million incurred a year earlier.

From July to September, its total revenues went up by 2.9% to P1.77 billion from P1.72 last year, the quarterly financial report of the shipping and logistics arm of the Udenna group showed.

The company’s improved revenues for the period were pulled down by higher expenses for the period.

For the nine months through September, the company trimmed its net loss to P1.04 billion from P1.49 billion a year ago.

Nine-month gross revenues climbed by 15.6% to P5.35 billion from P4.63 billion in the corresponding period last year.

The company attributed its higher top line to its shipping business, which recorded P5 billion in revenues for the period, or about 93% of its total revenues.

Broken down, its passage business accounted for P1.4 billion of revenues, while the freight segment contributed P2.4 billion, which it said was due to higher cargo volumes.

The charter and tugboat segments generated revenues of P462 million and P281 million, respectively.

Further, logistics revenues recorded P378 million as of September.

Total expenses for the period, however, reached P5.3 billion, a 3.3% climb, from P5.13 billion in the same period last year.

Meanwhile, Chelsea Logistics has expressed optimism about sustaining its growth momentum.

“This improvement in our revenue’s performance is a testament to the hard work, dedication and innovation of our entire team, who have adapted to the challenges and opportunities of the changing market,” said Chryss Alfonsus V. Damuy, the company’s president and chief executive officer.

Chelsea Logistics will continue to strengthen its business segments as it aims to return to profitability, he said.

“As we enter the fourth quarter of the year, the Group is confident that we will maintain our momentum and meet our strategic objectives. We have a robust pipeline of new products and services, a devoted and expanding customer base, and a clear vision for the future,” said Ignacia S. Braga IV, chief financial officer of Chelsea Logistics.

At the local bourse on Wednesday, shares in the company closed unchanged at P1.24 apiece.

Both Phoenix and Chelsea Logistics are chaired by Davao City businessman Dennis A. Uy. — Sheldeen Joy Talavera and Ashley Erika O. Jose


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