Philippines: Phoenix Petroleum buys Petronas Energy, Duta for $126m

Phoenix Petroleum Philippines Inc logo

Phoenix Petroleum Philippines Inc has acquired 100 per cent shares in Petronas Energy Philippines Inc (Pepi), and Duta Inc for a total consideration of up to $126.1 million (P6.268 billion).

Phoenix Petroleum bought all interest owned by PDB Nehterlands BV (PDBN) in Pepi and Duta. PDBN is an investment holding company of Petronas Dagangan Berhad (PDB), a Malaysia-based company engaged in retail and marketing of oil and gas products.

The latest deals marked Phoenix Petroleum’s foray into the LPG business which it views as “a strong strategic fit” as it broadens its product portfolio and petroleum presence across the Philippines, with cross-selling opportunities in fuel and LPG to consumers and corporates.

Founded in 2002, Phoenix Petroleum is engaged in the business of trading refined petroleum products, except LPG, and operation of oil depots.

Pepi is primarily engaged in the buying, selling, storing, distributing, and marketing at wholesale of all kinds of goods, including but not limited to liquefied petroleum gas and other petroleum products.

Also Read: Philippines: Phoenix Petroleum disposes two companies for $59.7m

Duta, however, is a private stock corporation incorporated since November 9, 1994 and is registered with the Securities and Exchange Commission.

“In this relation, since Pepi is engaged in the bulk sale of LPG, the acquisition includes Duta which holds the properties where Pepi’s business operations are located or established,” Phoenix Petroleum said in its statement.

Phoenix Petroleum acquired more than 1.92 million common shares and 1.511 million redeemable preferred shares for Pepi, and 457.5 million common shares for Duta.

The $126.1 million total price of the shares was arrived at on a willing-buyer-willing-seller basis.

This referred to the audited financial performance of Pepi and Duta for the FYE December 31, 2016, and the combined new assets of P2.567 billion of both firms for the same period. The total purchase price or consideration represents a price-to-book ratio of around 2.44 times.

Also Read: Philippines: Petron buys San Miguel power plant for $400m

The latest investments are expected to boost Phoenix Petroleum’s bid to introduce new products and services and business expansion this year.

The company posted a net income of P282 million in the first quarter of 2017, up 11 per cent from the P255 million in the same period last year, as a result of better sales mix and higher efficiencies.

Revenues increased by 35 per cent to P8.7 billion, driven by a 39 per cent increase in fuel sales. The independent oil firm’s last trading price increased 1.38 per cent or P0.140 to close at P10.32 per share on Thursday (July 6).

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

Only last week, Phoenix Petroleum opened its ninth facility in the Philippines and its largest in the Visayas region. The new terminal has a capacity of 15 million liters and can store diesel, gasoline, jet fuel, special fuel oil, and industrial fuel oil.

The company completed 515 Phoenix retail service stations as of the first quarter, with more stations being constructed to be open this year.

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.