The firm has opened a trading office and has also hired 7 employees
As fuel retailer, Phoenix Petroleum Philippines Inc. pushes to secure refined fuel to sell in its local market, it has set up a trading office in Singapore, expanding in the region.
With its soft opening launched in the first week of November, the Singapore office has hired 7 people so far including three traders and will be the sole supplier of refined fuels to Phoenix in the Philippines.
In 2018, the company anticipates the requirement of 2 billion liters, or about 12.6 million barrels of fuels, including liquefied petroleum gas (LPG), up from the 1.7 billion liters this year and 1.5 billion liters in 2016.
Presently, Phoenix Petroleum Philippines purchases its fuels from fuel traders in the region who in turn procure supplies from refiners. By buying directly from refiners, the company hopes its Singapore office will be able to cut out such middlemen.
Joseph John Ong, the firm’s chief finance officer, said “What we envision is that since Phoenix Singapore will be a full trading outfit, it will not only supply to Phoenix Philippines, it will also sell to other parties in the Philippines and also in the region. That will allow it (economies of) scale and allow it to expand and deal directly with refineries.”
To the over 500 retail stations it has in the Philippines, the company aims to add another 30 to 50 retail stations in the next year.
With a 6.5- to 7.5-percent growth target for 2017, which is expected to boost spending and drive consumption of fuels, the Philippines is one of Asia’s fastest expanding economies.
Appetite for refined fuels is anticipated to be increased by double-digit growth in automotive sales, as well as more infrastructure projects and airport expansions.
Ong said that they would still need to look for ways to expand their reach and the fastest way to increase market share would be to acquire existing players. PWKD05122017