Phoenix Petroleum remains focused on strengthening its operations despite a tumultuous year of volatility in global oil markets, recessionary concerns amidst record high inflation, peso depreciation, and monetary tightening, and muted demand. Against this exceedingly challenging macroeconomic backdrop, the Company continues to exercise prudence in OPEX and CAPEX and enhance productivity and efficiency across businesses resulting in a 21% growth in per unit EBITDA year-to-date.
The LPG business, which grew 11% quarter-on-quarter, remains a bright spot in the portfolio. During the third quarter, domestic LPG volume grew 9% the prior year and a further 8% from the previous quarter. Overseas LPG likewise recovered strongly from a weak 2Q this year with volume rising 16% quarter-on-quarter and growing 3% year-to-date. Both standalone businesses continue to benefit from robust underlying demand in the Philippine and Vietnam markets, adequately supported by working capital.
Domestic fuel volume was sharply lower in the third quarter, with the overseas trading business likewise taking a breather after consecutive quarters of unprecedented growth. As a result, year-to-date EBITDA was 32% lower year-on-year at P1.8 billion. Recovery in fuels was further set back by lack of scale driven by persistent challenges in liquidity and uncertainties in global markets and economic growth.
Despite the difficult business backdrop, the Company is able to expand its network through a capital-light strategy. To date, it has opened over 700 stations nationwide. Going forward, the Company expects better results as the business transitions to a more sustainable supply chain and logistics model to be able to scale up again to pre-pandemic levels and as it continues to benefit from higher productivity from the structural initiatives and programs implemented over the past years.
“We are grateful to the men and women of Phoenix who remain motivated, and to our partners in the business who have steadfastly supported us. The focus remains on delivering quality products and services to our customers as we recover from the COVID-19 pandemic, and continue to navigate the volatile markets,” said Phoenix Petroleum President Bong Fadullon.