Philippines: Phoenix Petroleum disposes two companies for $59.7m

Phoenix Petroleum Philippines Inc logo

Listed oil company Phoenix Petroleum Philippines Inc (PNX) has sold its two companies raising up to $59.7 million (P3 billion).

They are Phoenix Petroterminals & Industrial Park Corp (PPIPC), and Chelsea Shipping Corp. The goal is to focus on Phoenix Petroleum’s core business and use some of the proceeds to pay existing debts.

“The sale will allow the company to allocate all of its resources to fuel and thus enable to drive its aggressive growth of its core business and distribution of petroleum products nationwide,” Phoenix Petroleum said in its statement.

It added proceeds shall be used to pay off existing debts which will effectively reduce interest-bearing-debt-to-equity ratio.

Also Read: Philippines: Phoenix, Noble Fuels mull petroleum biz joint venture

PPIC is a developer of and manages the Phoenix Petroterminals & Industrial Park consisting of about 94 hectares of land spanning the 3 Barangays (villages) Salong, Puting Bato West, and Lumbang Calzada in Calaca, Batangas. It is engaged in the business of acquiring and selling lands, buildings and improvements and the like.

Chelsea Shipping is principally engaged in the maritime transportation of petroleum and other petroleum based products or fuels for industrial, marine, aviation and automotive use, whether wholesale or retail.

Phoenix Petroleum sold all of PPIPC’s 6 million shares to its affiliate Udenna Development Corporation (UDEVCO) priced at P166.667 apiece amounting to $19.9 million (P1 billion).

For Chelsea Shipping, the listed oil company sold also all 10 million shares to another affiliate Chelsea Shipping Group Corp priced at P200 per share for a total of $39.8 million (P2 billion).

Also Read: Pilipinas Shell achieves $2.2b market cap in IPO debut

UDEVCO already paid P950 million in cash and will complete the remaining balance of P50 million within six months from execution of the Deed of Sale.

Phoenix Petroleum likewise received in cash 75 per cent of the payment for the Chelsea Shipping shares and the remaining balance of 25 per cent will be paid in cash within six months.

Phoenix Petroleum explained since the core businesses of PPIPC and Chelsea Shipping are different and independent from its core business, there is no material effect in terms of business and operation of Phoenix on the matter of its financial condition.

“The disposition will relieve as it will free up the consolidated debt to equity ratio of the company,” Phoenix Petroluem noted. “Moreover, the proceeds will enable the company to pay off its existing interest bearing debts and thus improve its financial statements.”

Phoenix Petroleum last traded at P7.15 per share on Friday (February 24).

Also Read:

PH: Phoenix Petroleum gets $42.2m in shares sale, to raise $74m via STCP

Pryce Gases, Otto Energy PH ink $3.2m farm-in deal

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.