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Leading petroleum franchise brand posts Q2 2011 results

Franchising drives company\\\'s continued growth
By Entrepreneur Staff |

Leading petroleum franchise brand, Phoenix Petroleum, announced that its net income for the second quarter of the year is down by 35 percent.

In a statement submitted to the Philippine Stock Exchange, Phoenix Petroleum said that its income was trimmed by as much as P65 million. In the first quarter of the year, the petroleum firm posted a P185 million net income while the second quarter only generated P120 million.

The company blamed the sharp drop in crude oil prices in the world market, which affected the company’s profitability due to existing inventories purchased at higher prices.

Meanwhile, the company reported a June 2011 year-to-date income of P305.49 million, a growth of 126 percent compared to the P135.4 million net income posted in the same period last year. This was driven by the increase in revenue to P13.98 billion in the first two quarters of 2011 compared to P6.188 billion during the same period of 2010. Volume also increased 87 percent year-on-year.

The growth comes from the expansion of the independent oil company’s retail network and increase in sales from its retail and commercial accounts. Phoenix Petroleum has a network 190 stations as of June 2011 from 161 stations at the end of 2010. Of the 190 stations, 141 are in Mindanao, 6 in Visayas, and 43 in Luzon.

In 2010, Phoenix Petroleum is estimated to have captured 2.5 percent market share in the petroleum industry based on volume. It is the leading independent oil company in Mindanao and is aggressively expanding in Luzon and Visayas.

Based on its 1st half performance, the company is confident of hitting its target of additional 80 stations for the year.

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