PHOENIX Petroleum Philippines, Inc. said on Monday that if its proposed asset transfer or sale is authorized, it will boost investor interest and raise returns on investment capital.
Phoenix Petroleum said in an information statement filed with the local stock exchange on Monday that the addition of a reliable strategic partner might raise investor trust in the firm.
This could “set the tone for potential capital raising operations in both the debt and equity markets,” according to the study.
The planned asset sale or swap comes three weeks after the company revealed that its board of directors had approved the change to help with debt management. The resolution would be presented to shareholders for consideration on April 30 at the company’s annual stockholders’ conference.
“[Other consequences of the proposed actions include] higher returns on investment capital as a result of improved asset use by selling or transfer; future benefits to the overall bottom line, [and] strengthened credit risk profile and reduced interest rates… as purchase proceeds are used to pay down debt,” the firm said.
At the moment, the firm has not entered into any transactions concerning mergers, consolidations, acquisitions, or related matters.
Phoenix Petroleum’s Senior Vice-President of External Affairs, Corporate Development, and Security Alan Raymond T. Zorrilla said last month that the company was looking at ways to increase the value of properties outside of its core market.
The listed oil firm, headed by Dennis A. Uy, previously stated that, like any other corporation, the organization or any of its divisions are “open to accept any investor willing to invest who believes in the operations [of Phoenix Petroleum] and may further add value to its business activities.”
It previously stated that local volume revenues will decline by 20% in 2020, with fourth-quarter sales cushioning the blow. It ended the year with a net gain of P63 million, and revenue from October to December totaled P158 million, reversing previous losses.