Phoenix Petroleum Philippines (PNX) of Duterte crony Dennis Uy continued its downward spiral as losses mounted due to rapidly declining sales.
PNX reported losses of P3.72 billion in the first nine months this year, a 507 percent reversal from its P616 million income during the same period in 2022.
Its revenues tanked 57 percent year on year to P42.8 billion as its domestic sales shrank after management decided to procure its supply directly from a third party and it merely earns service income. Total volume dropped by nearly half to 1.156 million liters during the period.
In its report, management continued to cite “the impact of the lingering effects of the pandemic and geopolitical tensions.”
The local economy, however, has been back to normal since late 2022 while oil prices have fallen to an average of $79.58 per barrel this year from $100.16 a year ago.
PNX’s non-operating charges jumped 32 percent to P2.925 billion due to higher interest costs and deferred loan payments (up P404 million), loss from its joint venture (up P131 million), and loss from disposal of assets (up P43 million)
Phoenix Petroleum’s cash reserves took a hit, plunging by 43 percent to P2.4 billion, while its due from related parties expanded by 34 percent to P3.744 billion.