CUTS CAPEX TO P1.5B
PHOENIX Petroleum Philippines Inc. will cut its capital expenditure to P1.5 billion from P3 billion this year, focusing on projects that are immediately revenue generating to cope with the impact of the new coronavirus disease 2019 pandemic.
“We will continue to work to put the company of firmer financial footing as we have done in the past year,” said Concepcion de Claro, Phoenix chief finance officer.
De Claro said in its annual stockholders’ meeting last Friday the company will save as much as P800 million when it shifts to digital marketing.
“These cost actions will help keep our operating expenses in line with the expected weaknesses in demand this year,” De Claro added
But she said despite the near-term pressures and uncertainties, Phoenix plans to invest more on higher margin and higher growth businesses such as retail and liquefied petroleum gas.
Phoenix Petroleum’s convenience store retailing business, Philippine FamilyMart launched last month two rolling stores and is poised to offer a delivery service to make its products more accessible.
