DENNIS A. UY-LED Phoenix Petroleum Philippines, Inc. ended the year with a P4.25 billion refinancing scheme, which included the short-term commercial paper (STCP) settlement of P3 billion and the redemption this month of its P1.25 billion preferred stock, the firm said on Monday.
STCP Series C of the business, agreed on Dec. 5, was refinanced with a long-term loan. It is intended to boost the liquidity profile of Phoenix Petroleum thereby relieving strain on instant cash capital.
Meanwhile, the redemption of its preferred shares from the third tranche of Series A (PNX3A), which was declared on Dec. 18, is expected to achieve capital cost savings, Phoenix Petroleum said.
“It has been a tumultuous year, but we have been making headway in our partnerships with lenders, and are finishing the year with renewed intensity and positivity,” said Henry Albert R. Fadullon, President of Phoenix Petroleum.
He continued that the group was making “real strides” in maintaining the long-term stability of the company, but after the pandemic, the company will “come out better and healthier.”
The new financial management policy of Phoenix Petroleum is backed by a policy of capital-light growth based on alliances and an integrated franchising network covering its diesel and liquified petroleum gas goods, retail stores, and payments.
The business demanded a temporary suspension of trade on its PNX3A preferred securities last week, while Phoenix Petroleum stated it wanted to discuss its arbitration issues and queries.
On Dec. 22, in a regulatory report, the firm reported that it “substantially complied” with all the terms and conditions of its issuance of PNX3A stock and that no unpaid dividends were eligible.
Phoenix Petroleum posted a net income of P296 million during the third period, a turnaround from its P5 million loss in the second. From July to September, gross volume revenues rose by 42 percent after the revival of its local market in the middle of relaxed quarantine protocols and tripled sales in other nations.