Phoenix targets Visayas-A A +A
Friday, February 7, 2014
INDEPENDENT oil firm Phoenix Petroleum Philippines Inc. (PNX) is opening 100 new branches across the country this year.
It opened yesterday on U.N. Ave. in Umapad, Mandaue City its largest station in Cebu, also its 11th in the province to date.
Lawyer Raymond T. Zorrilla, vice president for external affairs-business development at PNX, announced they will be building 36 more stations in the Visayas this year. In Cebu, seven more stations are under construction and they plan to add more five stations within the year.
By the end of 2014, PNX expects to have a total of 62 stations in the Visayas.
Zorrilla said the aggressive expansion of the company stemmed from the constantly growing demand in the market.
“The opportunity is there. We went around the country we saw that the market is not yet saturated,” he said. “We are bullish because the market is expanding and because the public wants affordable and high-quality fuel.”
Started in Davao
The Davao-based oil firm is engaged in the business of retail and commercial sales and the trading of refined petroleum products and lubricants, operation of oil depots, storage and transport services and integrated logistic services. Its products and services are distributed and marketed under the Phoenix Fuels Life trademark.
Zorrilla declined to disclose the total investment for the expansion but he the investment typically depends on the franchise type, size and location.
He noted that a company-owned, dealer-operated franchise type may require from P5 million to P6 million and above, while a dealer-owned, dealer-operated franchise may require from P3 million to P4 million.
The PNX station located along U.N. Ave. in Mandaue City is a 1,200-square-meter company-owned, dealer-operated franchise valued at over P10 million, exclusive of Phoenix products. It is the company’s second station in Mandaue and is the first venture of the Cebu-based Hayco Fuel Enterprise.
The Hayco family’s Port Seafood Restaurant and Beverly View Events Pavilion both operate in Lahug, Cebu City.
PNX dealer Erika Hayco said the establishment of another Phoenix gas station is meant to aid the booming business activity of the province.
Zorrilla said the gas station franchise is among those in-demand franchise products because it is a fast-moving commodity despite price volatility. It is also one of the franchise products with a faster return of investment, at two to three years.
Phoenix has about 400 stations nationwide.
The publicly-listed firm disclosed that its consolidated revenue as of September 2013 increased to P31.7 billion, up by 27 percent, compared to the same period in 2012.
The growth was brought about by the 32 percent increase in fuel sales volume during the year, the firm said.
It was driven primarily by the company’s continuously expanding retail station network and increasing sales from commercial accounts from the fishing, mining, power and transportation sectors.
PNX’s current market share stands at 7.2 percent of the total industry, according to the Department of Energy.
Published in the Sun.Star Cebu newspaper on February 08, 2014.