1 month ago
9
Brix Lelis - The Philippine Star
February 12, 2025 | 12:00am
MANILA, Philippines — Phoenix Petroleum Philippines Inc. of Davao-based businessman Dennis Uy continues to grapple with financial obligations, unable to pay dividends to its preferred shareholders even after over two years.
Phoenix told the Philippine Stock Exchange yesterday that it still has no unappropriated retained earnings to pay such dividends or redeem its preferred shares.
The listed fuel retailer said its financial position experienced “no significant change.”
“The company is still focused on restructuring its debts or still negotiating for its liability management exercise with our creditors while managing its current resources internally in order to increase working capital,” it said.
In November 2022, Phoenix approved the declaration of cash dividends of P18.92 per outstanding Series 4 preferred share from its unrestricted retained earnings for 2021.
The dividends were originally payable on Nov. 22, 2022 to its stockholders of record as of Nov. 21, 2022.
The company, however, postponed the planned payout in line with its strategy to “preserve resources to improve operations and ensure long-term sustainability of the business.”
“The business operations remain its priority so that the company would be able to eventually settle its obligations to its contractors, suppliers, creditors and stockholders,” Phoenix said.
“Hence, while we are aware of our obligations, we are still unable to fulfill them as of this time. We shall update you with any developments that may occur should the financial condition of the company changes,” the listed company said.
Phoenix likewise reaffirmed its commitment to still fulfill its financial obligations, saying it would disclose “any further progress on these matters as they develop.”
In an earlier disclosure, the company said it secured authorization from its board of directors and stockholders to sell its non-performing and non-core assets to raise capital and streamline operations.
Currently, Phoenix is primarily engaged in selling and distribution of petroleum products such as fuels, liquefied petroleum gas and other related products.
