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RUSH June 2018

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Table of

Contents

04 PRESIDENT’S MESSAGE

05 IN 2017...

06 Coo’s message

Up TO SPEED

08 Phoenix Petroleum

launches Phoenix PULSE

Technology

10 The beneFIts of pulse

12 leading the charge in 2017

13 Phoenix x factor

GET YOUR PULSE RACING

Phoenix started 2018 strong, unveiling

our new PHOENIX PULSE TECHNOLOGY.

Find out the who, what, why, and how.

Pg. 8

new frontiers

23 our newest clients

24 New Ventures

26 beneFIts and uses of lpg

SPREADING OUR WINGS

A lot happened in 2017. We’re not the

Phoenix you used to know. Pg. 24

think tank

30 Disrupting the

petroleum industry

32 2040: the future of

energy in the philippines

34 new tax reform law

beyond business

36 csr PROGRAMS

2040 — ARE YOU READY?

E-jeepneys and natural gas-powered

cars. What your commute will be like in

2040. Pg. 32

rising stars

39 Rhian’s High-Speed

Hobby

42 What fuels a PBA player?

Yes, We Will!

46 Station Owner of

the Year for Mega

Manila 2017

WHAT FUELS A PBA STAR?

How the Fuel Masters keep their engines

running at full speed. Pg. 42

3


RUSH

President’s

Message

Dear Phoenix Family, welcome to

our revitalized company magazine–

Rush–which has been given a

facelift to represent our company’s

young, entrepreneurial spirit, and

commitment to excellence.

Looking back on developments in the global

political arena last year, the balance of

economic power clearly shifted towards Asia.

Phoenix Petroleum stands as a sign of resilience and

potential with the clear commitment to continue

our strategy of organic growth and expansion by

acquisitions.

The Philippines had a remarkable year in 2017

under President Rodrigo Duterte, with economic

growth at 6.7%, third-best in Asia just behind China

and Vietnam. For our company, it was even better.

We recorded triple all-time highs in sales volume,

revenues, and net income. We also increased our

market share from 5.7% to 6.2%, cementing our

position as the leading independent and fastestgrowing

oil company in the country.

We have ventured into the LPG and the convenience

store business—two sectors that are highly promising

given the current favorable macroeconomic

environment and growing consumer buying power.

We have also opened a trading office in Singapore

to explore new avenues for our business into the

ASEAN region. Within our holding company, UDENNA

Corporation, we have now diversified from petroleum

to shipping and logistics, real estate development,

education, and services. And we will certainly not

stop here.

What makes me proud is that all this happened

in just 15 years. I always believed that success in

business can be achieved if one has passion and a

vision combined with an entrepreneurial mindset.

This was how we carved our own niche when we

started in Mindanao in 2002, and showed the industry

the growing power of the independents.

All of these wouldn’t have been possible without the

trust and support of our partners and customers, and

the commitment and passion of our Team Phoenix.

We thank you for joining us in our journey. Our

success is also your success. Hand in hand, let

us continue with our pursuit to be the Filipinos’

indispensable partner in their life’s journeys.

EDITORIAL

Corporate Communications

From Dennis A. Uy

President and CEO

Contact Us

Customer Service Numbers:

PLDT Toll-Free: 1-800-10-PNX-FUEL (769-3835)

Globe Toll-Free: 1-800-8-PNX-FUEL (769-3835)

Mobile: 0917-313-7011 to 18 (Globe), 0998-960-4246 to 53 (Smart)

Email: info@phoenixfuels.ph

Connect with Us

Website: www.phoenixfuels.ph

Facebook: www.facebook.com/phoenixfuels.ph

Twitter: www.twitter.com/phoenixfuels

Instagram: www.instagram.com/phoenixfuels

Youtube: www.youtube.com/PhoenixPhilippines

A publication of Phoenix Petroleum Philippines, Inc.

All rights reserved. Copyright 2018

No part of this magazine may be reproduced in any manner without the permission of Phoenix

Petroleum. This magazine is distributed free to Phoenix staff, dealers, and business partners.

4


PHOENIX PETROLEUM

In 2017:

17% 128%

FUEL SALES VOLUME IN 2017

INCREASE IN STOCK PRICE

530

STATIONS

NATIONWIDE

We acquired:

Philippines

JOINT

VENTURE

WITH THAILAND’S TIPCO AND

PHILASPHALT FOR DISTRIBUTION OF

ASPHALT PRODUCTS IN THE PHILIPPINES

1ST REGIONAL OFFICE:

6.2%

PETROLEUM

MARKET SHARE

IN 2017

5


RUSH

coo’s

Message

From Henry Albert R. Fadullon

Chief Operating Officer

In the more than one

year since I joined

Phoenix Petroleum, I have

had the opportunity to lead

and witness many exciting and

ambitious plans unfold.

Our vision is “to be an indispensable partner in

the journey of everyone whose life we touch,”

and we are moving the business forward with

the aim of bringing this vision to life.

To this end, I would like to explain how we will do

this. Our growth strategy is anchored on four key

pillars: delivering the basics, growing the business,

breaking new ground, and building people and

capabilities.

DELIVERING THE BASICS

We are building the brand to be a credible and

preferred alternative to the major players by

developing a compelling fuels offer anchored on our

Phoenix PULSE Technology. We are strengthening

our retail network by revamping the look of our

stations, driving operational excellence by setting

the right standards, and ensuring that we deliver our

customer offer consistently.

GROWING THE BUSINESS

We continue to push aggressively in areas where we

see the greatest opportunity that delivers growth

and value. For instance, we will make our services

available in more airports and serve more airlines as

we grow the aviation business both in domestic and

international fronts.

We will expand our retail business with focus on

bringing our sites closer to where our customers are

and with more innovative formats, as we make retail

a major volume and value driver.

BREAKING NEW GROUND

While we continue to grow our

core business, we will explore

opportunities to drive growth

and create value for our

shareholders.

Our entry to the LPG

industry is timely as the

market is expected to grow

significantly and, we aim to

capture some of that growth.

Our strong performance in Visayas

and Mindanao provides us a good

platform to expand the business and

enter Luzon where the majority of

the market is.

Another new business is convenience store retailing

through our acquisition of the FamilyMart franchise in

the Philippines. Our deep knowledge and experience

in retail have encouraged us to go further into the

retail market. The CVS industry is ripe for exponential

growth, driven by fresh ideas and innovative offers

particularly in food where the FamilyMart brand—

being known for quality—is well-positioned.

We have also established a trading office in

Singapore to enhance efficiencies in our petroleum

importation and to serve as our springboard for

regional growth.

With the government’s “Build, Build, Build” program,

bitumen presents another great opportunity for us to

maximize synergies of our well-established business

in fuels with the construction sector. This year, we

officially entered this promising industry.

BUILDING PEOPLE AND CAPABILITIES

We believe that an enterprise can only be as good

as its people, so we will continue to ensure that we

attract the best and the brightest, and invest in their

development.

As we move forward, we are building upon a strong

foundation based on a visionary driving force,

integrity and professionalism, as well as loyalty and

pride in our people.

And so while we will always be alert for possible

opportunities, the focus is very much on execution.

We have demonstrated our capability to take on

and integrate new business, and now we need to be

able to demonstrate that we have the capability to

execute the strategy and create value for the new

businesses we have entered.

Your Phoenix Team very much understands what is

expected of us and we are up to the challenge. Yes,

we will!

6


up to

speed


PHOENIX PETROLEUM

Phoenix Petroleum launches Phoenix PULSE Technology for

enhanced power and

acceleration

Phoenix Petroleum launched its upgraded

fuels powered with Phoenix PULSE

Technology in FebruarY. The launch

introduced the new fuel technology that

putS Phoenix fuels at par with THE majorS IN

THE OIL INDUSTRY.

Available in all its fuel

products, Phoenix PULSE

Technology is a fuel

additive with advanced

cleaning and protection

properties for enhanced power

and acceleration. It is made with

cutting-edge fuel technology

by world-class fuel experts,

exclusively for homegrown brand,

Phoenix Petroleum.

Phoenix PULSE Technology was

launched in time for Valentine’s

Day as it aims to bring pulseracing

excitement to Filipino

drivers by giving more life to their

everyday drive.

The upgraded fuel products

promise three main benefits.

It avoids fuel filter blockage

in diesel-powered vehicles,

removes deposits from fuel

injectors, valves, and piston

surfaces, and provides engine

protection. Phoenix PULSE

Technology also helps result to

better fuel economy when used

continuously.

“The launch of Phoenix PULSE

Technology is in fulfillment of

our goal to be the most credible

alternative to the major brands.

We enhanced our fuel products

and improved our formulation not

only to be able to compete with

bigger players in the oil industry,

but more importantly, to add

value to every peso fueled up at

Phoenix,” said Phoenix Petroleum

Chief Operating Officer Henry

Fadullon.

Young actress Rhian Ramos

is the face of Phoenix PULSE

Technology—an apt choice as

Rhian represents adventure and

high-energy sports such as car

racing.

“Phoenix Petroleum’s PULSE

Technology-powered fuel is the

perfect fit for me as I’m always on

the go. I like adventure and living

life with excitement and to the

fullest, which is why I recommend

Phoenix to every millennial who,

like me, likes to get more for what

they pay for,” said Rhian.

For a locally owned petroleum

provider, PULSE Technology is a

milestone in Phoenix’s proud

15-year history.

“As a homegrown brand, we aim

to be the Filipinos’ top choice

not only for their fuel needs, but

also for fueling their dreams and

aspirations. We work hard and

continue to grow our business not

only so we can bring our vision of

being an indispensable partner to

life, but also because as the next

generation company, we want

to provide this generation with

the best products and services

at the best value,” said Phoenix

Petroleum President and CEO

Dennis Uy.

Phoenix PULSE Technology is

available at all Phoenix stations

in all fuel grades. These next

generation fuels are suitable

for Filipino drivers looking for a

connection unlike any other.

9


RUSH

PHOENIX PETROLEUM

Phoenix Leads The Charge In

2017

Phoenix Petroleum cemented its position

as the country’s leading independent

oil company and an emerging major as it

increased its market share to 6.2% in 2017

from 5.7% the previous year.

The Department of Energy in its Oil Supply/Demand Report for 2017

showed Phoenix Petroleum as the company that improved the most

in market share, reinforcing its reputation as the fastest-growing oil

company in the country.

2.1%

3.3%

4.4%

5.9%

4.1%

4.7%

5.7% 6.2%

0.3%

27.6% 27.4% 27.4%

24.4% 24.3%

25.5%

23.0%

20.3% 20.0%

14.1%

11.9% 11.9%

9.9%

8.4% 8.1%

6.9% 6.8% 7.0%

37.1%

37.9% 37.9%

38.5%

36.5%

35.4%

30.4% 30.7%

27.6%

2009 2010 2011 2012 2013 2014 2015 2016 2017

12


PHOENIX PETROLEUM

Congratulations

to our Business

Partners for

their exemplary

performance

throughout 2017—

proof that they

truly have the

13


RUSH

RETAIL AWARDEES - North luzon

Station of the Year

DODO

Verde Petrol Stations

(Phoenix Meycauayan)

Award received by Czylvester Pacheco

and Carmina Gaile Jutie

Station of the Year

CODO

Verde Petrol Stations

(Phoenix Meycauayan)

Award received by Czylvester Pacheco,

Carmina Gaile Jutie, Avelina Pacheco,

and Czyrus Pacheco

Lubes Generator of

the Year CODO

Verde Petrol Stations

(Phoenix Meycauayan)

Award received by Carmina Gaile Jutie,

Czylvester Pacheco, Avelina Pacheco,

and Czyrus Pacheco

RETAIL AWARDEES - south luzon

station of the year

dODO

HBR Phoenix Station & Services

(Phoenix Bauan 2)

Award received by dealers Hipolito and

Priscilla Revadulla

Lubes Generator of

the Year DODO

HBR Phoenix Station & Services

(Phoenix Bauan 1)

Award received by dealers Hipolito and

Priscilla Revadulla

Awarded by Phoenix COO Henry Albert Fadullon and General Manager

for Retail Business Ericson Inocencio during the Phoenix X Factor

Luzon Business Partners Appreciation Night on December 5, 2017 at

the City of Dreams Manila

14


PHOENIX PETROLEUM

RETAIL AWARDEES - MEGA MANILA

Station of the Year

DODO

Eastan Gasoline Station

(Phoenix Binangonan)

Award received by dealers Rosalinda

and Aaron Tan

Station of the Year

CODO

3rd Gen Fuel Station

(Phoenix Molino 1)

Award received by Jovies Perez, Hector

Sanares, and Anna Lariza Lopez

Lubes Generator of

the Year DODO

Eastan Gasoline Station

(Phoenix Binangonan)

Award received by dealers Rosalinda

and Aaron Tan

Lubes Generator of

the Year CODO

3rd Gen Fuel Station

(Phoenix Molino 1)

Award received by Jovies Perez, Hector

Sanares, and Anna Lariza Lopez

RETAIL AWARDEE - VISAYAS

Station of the Year

CODO

ACP5 Petroleum Trading

(Phoenix Numancia)

Award received by dealer Apol Zaraspe

Awarded by Phoenix

Vice Chairman and

Senior Strategic Adviser

Romeo de Guzman

and General Manager

for Retail Business

Ericson Inocencio

during the Phoenix X

Factor Visayas Business

Partners Appreciation

Night on November

23, 2017 at Marco Polo

Plaza, Cebu.

15


RUSH

RETAIL AWARDEES - NORTH MINDANAO

Lubes Generator of

the Year DODO

D. Domingo Gasoline Station 1

(Phoenix Cabadbaran 1)

Award received by dealer Virginia

Domingo

Lubes Generator of

the Year CODO

D. Domingo Gasoline Station 2

(Phoenix Cabadbaran 2)

Award received by dealer Virginia

Domingo

RETAIL AWARDEES - SOUTH MINDANAO

Station of the Year

CODO

PICIGI Phoenix Gasoline and Service

Station (Phoenix Cabantian)

Award received by Miguel Galvez,

dealer Patrick Linus Galvez, and Crejan

Galvez

Lubes Generator of

the Year CODO

Marchael Gas Station

(Phoenix Mabuhay 1)

Award received by station manager

Elrey Punay on behalf of dealer

Michael Buhisan

Awarded by Phoenix COO Henry Albert Fadullon and General

Manager for Retail Business Ericson Inocencio during the

Phoenix X Factor Mindanao Business Partners Appreciation

Night on December 8, 2017 at the SMX Convention Center, SM

Lanang Premier, Davao City

16


PHOENIX PETROLEUM

COMMERCIAL AWARDEES - LUZON

Top Volume

Contributor

2GO Group, Inc.

Award received by Matthew Parco

Top Lube Oil

Contributor

2GO Group, Inc.

Award received by Matthew Parco

Marine and

Fishing

Solid Shipping Lines Corporation

Award received by Fausto Tiu

TOP VOLUME CONTRIBUTORS:

Power Sector Assets and

Liabilities Management Corp.

Cebu Pacific Air

Transport and

Construction

JAC Liner, Inc.

Award received by Wilfredo Villa

Manufacturing

Central Azucarera Don Pedro

Award received by Rex Durban and

George Cheung

POWER AND GOVERNMENT:

Aboitiz Power - Oil Business Unit

MINING

Mareventures Mining and

Development Corporation

Mining

Taganito Mining Corporation

Award received by Roger Cadano

Long-time Business

Partnership Award

(5 years)

Steel Asia Manufacturing Corp.

Award received by Benjamin Yao

Awarded by Phoenix COO Henry Albert Fadullon and General Manager for Commercial and Industrial Business Roy Jimenez during the Phoenix

X Factor Luzon Business Partners Appreciation Night on December 5, 2017 at the City of Dreams Manila

17


RUSH

commercial AWARDEES - VISAYAS

Top Volume

Contributor

Ocean Fast Ferries, Inc.

Award received by Jay Maputol and

Genaro Lastimado

Top Volume

Contributor

Trans-Asia Shipping Lines, Inc.

Award received by Abraham Sy and

Judy Sy

Top Volume

Contributor

Cebu Sea Charterers, Inc.

Award received by Joy Sayson

Top Lube Oil

Contributor

Lite Shipping Corporation

Award received by Rolando Lahay-

Lahay

POWER AND GOVERNMENT:

Central Negros Power & Reliability Inc.

MARINE AND FISHING:

The Supercat Fast Ferry Corporation

18


PHOENIX PETROLEUM

commercial AWARDEES - VISAYAS

Top Lube Oil

Contributor

Concrete Solutions, Inc.

Award received by Janneth Acosta and

Mariciel Sta. Cruz

Transport and

Construction

Geo-Transport & Construction, Inc.

Award received by Lisa Halaghay and

Byron Sua

Manufacturing

Power and

Government

Kooll Company, Inc.

Award received by Kooll Company

representatives on behalf of President

Juanito Gamboa and VP Finance Jean

Chua

City Government of Cebu

Award received by Sñrta. Marie Trece

and Angelita Ponce de Leon

Awarded by Phoenix Vice Chairman and Senior Strategic Adviser Romeo de Guzman and General

Manager for Commercial and Industrial Business Roy Jimenez during the Phoenix X Factor Visayas

Business Partners Appreciation Night on November 23, 2017 at Marco Polo Plaza, Cebu.

19


RUSH

commercial AWARDEES - MINDANAO

TOP VOLUME

CONTRIBUTOR:

Y. L. Fishing Corporation

MANUFACTURING:

Top Volume

Contributor

Western Mindanao Power Corporation

Award received by Jose Marie Torrejon

Top Volume

Contributor

Rural Transit Mindanao Inc.

Award received by Leo Sotomil

SUMIFRU (Philippines)

Corporation

MARINE AND FISHING:

Jordan Fishing Corporation

Aleson Shipping Lines, Inc.

Top Lube Oil

Contributor

Apex Mining Corporation

Award received by Luningning de Luna

Transportation and

Construction

Bachelor Express Inc.

Award received by Stephen Camacho

Transportation and

Construction

Ulticon Builders Inc.

Award received by Susan Quintans

Power and

Government

Mapalad Power Corporation

Award received by Librada Tiongco

Manufacturing

ANFLOCOR Group of Companies

Award received by Diana Espolong

Long-time Business

Partnership Award

(10 years)

Davao Metro Shuttle Corporation

Award received by De Carlo Uy

Awarded by Phoenix COO Henry Albert Fadullon and General Manager for Commercial and Industrial Business Roy Jimenez during the Phoenix X Factor Mindanao

Business Partners Appreciation Night on December 8, 2017 at the SMX Convention Center, SM Lanang Premier, Davao City

20


PHOENIX PETROLEUM

lpg awardee - visayas

lpg AWARDEE - mindanao

LPG Dealer of the

Year

Citigas, Inc.

Award received by Christy Marie Woo

and Fulbert Woo

LPG Dealer of the

Year

Dreamers Gas Trading

Award received by Gerald Paul

Duremdes and Maripe Duremdes

Awarded by Vice Chairman and Senior Strategic

Advisor Romeo de Guzman and General Manager for

LPG Visayas and Mindanao Evelyn Gerodias during

the Phoenix X Factor Visayas Business Partners

Appreciation Night on November 23, 2017 at Marco

Polo Plaza, Cebu.

Awarded by Phoenix Chief Operating Officer Henry

Albert Fadullon and General Manager for LPG Visayas

and Mindanao Evelyn Gerodias during the Phoenix X

Factor Mindanao Business Partners Appreciation Night

on December 8, 2017 at the SMX Convention Center,

SM Lanang Premier, Davao City

lubes awardee

Lubes Distributor of

the Year

Southmin Consumers Inc.

Award received by Josefina Dalisay and

Felito Dalisay Jr.

Awarded by Phoenix Chief Operating Officer Henry

Albert Fadullon and General Manager for Lubricants

Sales and Distribution Jay Mujar during the Phoenix X

Factor Luzon Business Partners Appreciation Night on

December 5, 2017 at the City of Dreams Manila

21


22

New

Frontiers


PHOENIX PETROLEUM

Our newest

clients

Phoenix Petroleum has started supplying

Biodiesel, Premium 98, and Super 91 to

Meralco’s 11 fuel stations.

Meralco is the largest private sector electric

distribution utility company in the Philippines.

Phoenix Petroleum has extended its

into-plane services with Cebu Pacific for

its Bacolod and Dumaguete operations.

Cebu Pacific is a Philippine low-cost airline. In

2010, Cebu Pacific became the Philippines’ largest

airline based on the number of international and

domestic passengers.

Phoenix Petroleum has also started

supplying fuels to Aboitiz Power plants

in Cebu—the Cebu Private Power

Corporation (CPPC) and East Asia Utilities

Corporation (EAUC).

Aboitiz Power currently owns, operates, and

manages various generation plants, distribution

utilities, and retail electricity suppliers in the

Philippines.

Alaska Milk Corporation has switched

to Phoenix Petroleum for its monthly IFO

requirements.

AMC is the leading milk company in the Philippines,

providing canned, powdered, ready-to-drink, and

other milk products.

Phoenix Petroleum recently won the bid

to supply IFO to the Power Sector Assets

and Liabilities Management Corporation.

A state-owned company, PSALM is primarily tasked

with privatizing state-owned assets of the National

Power Corporation.

Phoenix Petroleum successfully

completed its first delivery of IFO 180 to

Granexport, the biggest copra processing

plant in the world.

Granexport specializes in extracting coconut oil

from dried coconut kernels, known as copra.

23


RUSH

NEW VENTURES

Phoenix spreads its

wings

In September 2017, Phoenix

Petroleum opened a trading office

in Singapore in a bid to broaden

our trading business and expand

to the region.

PNX Petroleum Singapore Pte.

Ltd. is the trading and supply

arm of the Phoenix Petroleum

group. It facilitates internal fuel

requirements and establishes a

regional presence in Southeast

Asia by following international

trading standards.

The office trades and supplies a

wide range of refined products

to serve all kinds of customers,

from retailers to ship owners, from

mining to transport companies,

and to airlines. Its services range

from supply and shipping to price

risk management. PNX Petroleum

Singapore is also open to other

partnerships and investments with

key players in Southeast Asia.

24

Paving the way for

new endeavors

In January, Phoenix Petroleum

announced a deal with Thailandheadquartered

Tipco Asphalt,

the leading manufacturer and

distributor of asphalt products

in Asia Pacific, and PhilAsphalt

Development Corporation,

to form a joint venture in a

40-40-20-percent share structure.

Under the name Phoenix Asphalt

Philippines, Inc., the newly formed

company will manufacture,

operate, market, and distribute

bitumen, bitumen-related

products, other by-products of

crude oil and petroleum products

and operate terminals and depots

in the Philippines.

In May, Phoenix Asphalt began the

construction of its own asphalt

plant in Calaca Industrial Seaport

Park in Batangas.

Phoenix Petroleum President and CEO Dennis Uy (4th from

left), PhilAsphalt Chairman Carlito Castrillo (center), and TIPCO

Public Asphalt CEO Somchit Sertthin (4th from right) lead the

contract signing on January 16, 2018 at the Shangri-La at the

Fort, Manila. They are joined by, from left, Phoenix Petroleum

COO Bong Fadullon, Vice Chairman Romy de Guzman, Chairman

Domingo Uy, TIPCO Public Asphalt Executive Director Jacques

Pastor, Managing Director Chaiwat Srivalwat, and PhilAsphalt

President Jose Paulo Castrillo.

TIPCO Asphalt executives visit the Phoenix Petroleum terminal

in Calaca, Batangas, on January 15, 2018. With them are

Phoenix officers led by COO Henry Albert Fadullon.

Phoenix Asphalt Philippines, Inc. breaks ground for its asphalt

facility in Calaca, Batangas, on May 3, 2018. Leading the

ceremony are, from left, TIPCO Asphalt CFO for Vietnam,

Indonesia, and Philippines Béranger Delimal, Phoenix

Petroleum Senior Vice President for External Affairs, Business

Development, and Security Atty. Raymond Zorrilla, Batangas

Vice Governor Sofronio Leonardo Ona, Jr., TIPCO Asphalt

Chief Operating Officer for International Retail Christophe

Voy, PhilAsphalt President Jose Paolo Castrillo, and Phoenix

Petroleum Corporate Secretary and VP for Corporate Legal

Atty. Socorro Ermac-Cabreros.


PHOENIX PETROLEUM

A big step into the

convenience store

retailing business

Also in January, Phoenix

completed the acquisition of

Philippine FamilyMart and its 65

stores.

The takeover of Japan’s

FamilyMart in the Philippines and

the company’s growth plans signal

a new age of competition in the

convenience store business in the

country.

The acquisition provides Phoenix

with the opportunity to grow

FamilyMart alongside its fuel

group, as both businesses strive

to capture a major share of their

respective industries.

Today’s green fuel

alternative

With last year’s acquisition of

Petronas Energy Philippines, Inc.,

Phoenix Petroleum entered the

fast-growing market for liquefied

petroleum gas in the country.

The move came as another step

to diversify Phoenix’s business,

and underlines the firm’s

environmental responsibility to

provide an affordable, green, and

highly efficient energy source.

Phoenix completed the 100%

acquisition of Petronas Energy

Philippines, Inc.—the Filipino LPG

unit of Malaysia’s state-owned

oil and gas giant Petronas—

on August 15, 2017. The deal

included the takeover of existing

infrastructure and distribution

facilities previously owned by

Petronas.

Petronas Dagangan Bhd (PDB) CEO Mohd Ibrahimnuddin

bin Mohd Yunus and Phoenix Petroleum President and CEO

Dennis Uy at the signing ceremony for the sale and purchase

agreement of Petronas Energy Philippines, Inc. and Duta, Inc.

in Kuala Lumpur, Malaysia.

Turn to the next page

to learn more about

LPG

Phoenix Petroleum led by President and CEO Dennis Uy seals

the acquisition of Philippine FamilyMart CVS, Inc. from SIAL

CVS Retailers, Inc. (a joint venture between ALI Capital Corp.

of Ayala Land, Inc. and the SSI Group, Inc.), FamilyMart Co.,

Ltd., and Itochu Corporation, during the signing ceremony on

January 10, 2018 in Manila.

25


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26


PHOENIX PETROLEUM

27


28


THINK

TANK


RUSH

Disrupting the

petroleum

INDUSTRY

Looking back to the 1970s

to 90s, the Philippine

gasoline and petroleum

products sector was tightly

held by three large companies—

Royal Dutch Shell, a British-

Dutch multinational oil and gas

company, one of the largest in

the world, Caltex, the Asia Pacific

brand of US oil giant Chevron,

and Petron, which by that time

was 40% owned by Saudi Arabia’s

Saudi Aramco and is part of the

San Miguel empire today.

With a concentration of

petroleum product supply

on urban centers, and other

regions left undersupplied and

underinvested by the top three,

as well as due to a lack of price

and service quality competition,

the Philippine government made

the decision to open the market

to new players and eventually

released the Oil Deregulation

Law of 1998 which allowed new

companies to participate in the

industry.

Young entrepreneur Dennis Uy

from Davao City saw a striking

opportunity to challenge and

disrupt the triumvirate of the big

oil players—an industry many

thought would be impenetrable.

In hindsight, Phoenix Petroleum,

as its name suggests, rose

strongly from its early beginnings

by focusing on underserved

markets and emphasizing its

domestic ownership. Over time,

the company transformed into

the largest independent in the

country with the additional

success of having become

the first oil company to be

listed on the Philippine Stock

Exchange following the industry’s

deregulation.

Phoenix Petroleum has built

a reputation as a homegrown,

efficient, and service-friendly

brand that is acknowledged by

its customers as being “a Filipino

company for the Filipinos,”

rather than an international or

Uy took a close look at the

market and noticed that

Mindanao was dominated by

the Big Three, and this was the

starting point. Inspired by an

opportunity to be a nimble fourth

player, he gathered together

some capital and built his own

brand.

Big milestones were Cebu Pacific

Air becoming the company’s first

large account, and BDO granting

its first credit line, which further

fueled Phoenix’s expansion until

it was ready for an IPO on the

30


PHOENIX PETROLEUM

THE RISE OF PHOENIX PETROLEUM AND OTHER

INDEPENDENTS IS CHANGING THE GAME OF THE

DOMESTIC PETROLEUM MARKET IN THE PHILIPPINES.

domestic conglomerate with

little identification potential and

customer connectivity.

Philippine Stock Exchange in

2007.

From its humble beginnings,

Phoenix Petroleum has grown

its network to more than 500

stations today and serves

hundreds of companies in various

industries. It is expanding from

retailing stations to supplying

fuel and lubricants to commercial

accounts, logistics, terminaling,

hauling, into-plane services, LPG,

bitumen, and convenience store

retailing.

The rise of Phoenix Petroleum

and other independents is

changing the game of the

domestic petroleum market in

the Philippines, with the share

of the top three shrinking from

dominance to 55% in just two

decades.

Phoenix Petroleum’s inspiring

performance has paved the way

for other local players to up their

game, and it will be exciting times

as the industry faces disruption

not only from within, but also

from changing technologies and

consumer needs.

31


RUSH

The Philippines, because

of its geographically

exposed position being

particularly vulnerable to

extreme weather conditions, has

been suffering from more violent

storms in recent years. With a

projected population growth to

an estimated 140 million people

by 2040 from roughly 100 million

people as of now, the demand

for energy is forecasted by the

Department of Energy to increase

to more than four-fold from 12.2

MW in 2015 to 49.3 MW by 2040.

Mindanao is projected to have the

highest growth in demand at an

annual rate of 8%.

While coal and oil will still play

a fundamental role in energy

supply for the country over the

next two decades and beyond,

there has been a focus set in

the Philippine Energy Plan 2017-

2040 on cleaner energy sources,

including liquefied petroleum

gas (LPG) and natural gas for the

transport sector, as well as on

increasing the share of renewable

energy sources—namely biomass,

geothermal, solar, wind, and

hydro—in the power mix in order

to sustainably reduce carbon

emissions. This should come

together with the promotion to

implement clean, efficient, and

smart energy technologies, since

meeting the dual challenge of

mitigating the risks of climate

change while boosting alternative

energy supply requires additional

technological advances.

With regard to renewable

energy, the Philippines seems

to be on the right track. The

installed capacity of renewable

energy in the country grew

significantly over the past years,

pushed by continuous promotion

and encouragement of the

Department of Energy towards

renewable energy developers

through a variety of incentives

such as feed-in-tariffs and priority

dispatch regulations.

Fuel transition in the

transportation sector

Another important step in

the energy transition of the

Philippines will be the adoption

of alternative fuels such as

natural gas and other power

sources for vehicles—a change

that will take significant effort

since it is disrupting an entire,

well-established ecosystem

built upon by established energy

companies, conventional vehicle

manufacturers, and infrastructure

plans.

Globally, this system is being

challenged in recent years with

the advent and growing popularity

of more environmentally friendly

cars and electric vehicles, as well

as scandals involving fraudulent

auto manufacturers downplaying

the polluting effects of their

engines. This has resulted in

several countries—including the

most populous, China and India,

as well as the U.K., Germany,

32


PHOENIX PETROLEUM

France, and Norway—into

moving towards banning the

production and sale of all diesel

and gasoline-powered vehicles.

Industry estimations expected

that by 2040, almost half of new

cars sold globally will be electric

vehicles and a significant part

of the rest will be natural gaspowered

or at least, hybrid.

While there are no plans for an

outright ban on gasoline and

diesel in the Philippines yet,

there is a clear strategy towards

the deployment of natural gas

vehicles (NGVs) and electric

vehicles—even if most jeepney

operators contested the idea for

cost reasons. The Electric Vehicle

Association of the Philippines is

pushing the government to install

a national development program

for electric vehicles over the

next 10 years which would not

only support electric vehicles,

but also build an entire industry

of developing, manufacturing,

selling domestically and

exporting them, and replacing

tricycles and jeepneys with

electricity-powered versions.

Overall, the increase in numbers

of NGVs and electric vehicles is

expected to drastically change

the energy landscape in the

Philippines up to 2040. Likewise,

change is also expected to

happen on the way the transport

sector is organized and how

the everyday experience of

commuters and travelers will

be shaped by more sustainable,

greener, and healthier transport

facilities.

As the market transitions to these

alternative energy sources, LPG or

autogas presents itself as a viable

and credible alternative to bridge

the transition from conventional

fuels to the electric vehicles of

the future.

LPG is today’s green fuel

alternative, being affordable,

readily available, and portable.

It is used as an alternative for

different applications, including

power plants. Autogas, or LPG

used to power vehicles, is now

commonly used in a growing

number of countries for private

cars and public transportation

vehicles.

The challenge for energy players

is to lead the way to the future

when the landscape will change

from sources to usage.

33


RUSH

tax reform law 101:

all you need to know

President Rodrigo Duterte signed into

law the Tax Reform for Acceleration and

Inclusion (TRAIN) on December 19, 2017.

The tax reform, which took effect at the

start of 2018, is expected to generate almost P150

billion in revenues, which will be used for various

infrastructure projects and social services.

Among the implemented revenue enhancing

measures were adjusting the excise taxes on fuel and

automobiles and the broadening of the value-added

tax base. Particularly for the oil and gas industry, the

new law also included the tax administration reform

called the mandatory fuel marking program.

Slated to start within five years of the

implementation of TRAIN, the fuel marking program

calls for all petroleum products imported to or

manufactured in the Philippines, to carry an official

fuel marking technology that will ensure the

payment of duties and taxes laid out in the TRAIN

law. The program aims to curb oil smuggling,

which is a rampant problem in the Philippines. The

Department of Finance (DOF) expects the system to

be in place by the second half of 2018.

WHERE THE TAXES WILL GO

INFRASTRUCTURE

PROGRAMS

EDUCATION

HEALTHCARE

SERVICES

In the next 5 years, the tax reform can fund:

35,745 km of paved roads or

786,400 km of temporary

bridge upgrades or

2.6 million hectares of

irrigated land.

629,120 public school

classrooms, or

2,685,101 public school

teachers.

60,483 rural health units, or

484,326 barangay health

stations, or

1,324 provincial hospitals.

New Excise Tax Rates for Fuel:

Automobile Excise Tax:

Fuel (per liter)

2017 and

prior years

2018 2019 2020

Price

Non-Hybrid

Cars

Hybrid

Cards

Diesel

0

Php 2.50

Php 4.50 Php 6.00

Up to 600,000

Over 600,000 to 1 Million

4%

10%

2%

5%

LPG

0

Php 1.00 / kg

Php 2.00 / kg Php 3.00 / kg

Over 1 Million to 4 Million

20%

10%

Gasoline

Php 4.35

Php 7.00 Php 9.00 Php 10.00

Over 4 Million 50% 25%

34


Beyond

Business

35


RUSH

Phoenix fuels the

dream of over

3,000 kindergarten

scholars

Phoenix Philippines Foundation, the

corporate social responsibility arm of

leading independent oil company, Phoenix

Petroleum, joined families and friends of 3,319

kindergartens from various schools nationwide

as it supported their moving up to grade one from

March 28 to April 5, 2018.

The youngsters were from 14 Phoenix-adopted

schools located in Batangas, Calapan, Manila,

Aklan, Cebu, Iloilo, and Davao City.

Since 2009, Phoenix Philippines Foundation has

been helping Filipino youths get started on life by

allowing them to study for free through its Adopt-

A-School program. From its first adopted school—

Vicente Hizon Elementary School in Davao City—the

program has now expanded to 23 public schools

nationwide—six in Luzon, seven in Visayas, and 10 in

Mindanao. Phoenix shoulders the monthly salaries of

the schools’ pre-school teachers and donates books

for their libraries, enabling pre-schoolers to study for

free.

Phoenix has also built Phoenix Libraries in various

schools across the country equipped with books,

tables, chairs, and other learning materials.

Before the start of each school year, Phoenix

employees help welcome the students to clean and

refurbished classrooms by joining the foundation’s

annual Brigada Eskwela program.

The company has also supported out-of-school

youths, the unemployed, and those seeking to learn

new skills, through the Alternative Learning System.

ALS is a free livelihood education program of the

Department of Education, implemented with the

support of institutions like Phoenix.

With two ALS schools—F. Bangoy Central

Elementary School in Davao City and the Banisil

Central Elementary School in General Santos

City—Phoenix helps fuel the dreams of more

Filipinos by sponsoring the salaries of instructors,

providing training facilities and equipment, and

allowing students to study various courses for free

such as welding, plumbing, electrical installation,

maintenance, computer servicing, and beauty culture

and hairstyling.

Education is one of the thrusts of Phoenix Philippines

Foundation and, over the years, it has helped Pinoys

by providing them with sustainable livelihood

opportunities.

36


PHOENIX PETROLEUM

Siklab Atleta launches

quest to bag FIrst

Olympic gold

With the goal of supporting athletes in

their quest to win a gold medal in the

Olympics, Siklab Atleta Pilipinas Sports

Foundation, Inc. was launched on

March 3, 2018.

At the helm of the organization is Phoenix

Petroleum President and CEO and

Presidential Adviser for Sports Dennis Uy.

“Siklab Atleta Pilipinas Sports Foundation will fuel

the country’s best athletes to make our dream of

bagging an Olympic gold a reality. We need to

provide our athletes the support befitting their

stature as our country’s representative to the world,”

he said.

PHOENIX FUEL MASTERS TRAIN

YOUNG BASKETBALL ASPIRANTS

Phoenix Philippines Foundation launched the Phoenix Pinoy Hoops

program on April 8, 2018 at the SBMA Gym in Subic, Zambales. The first

batch of young basketball aspirants trained from April 8 until April 11,

while the second batch had their training from

April 14 to 18.

Pinoy Hoops is the first in the series of events

of the Phoenix Philippines Foundation that

aims to develop athletes across the country

through basketball clinics conducted by

the Fuel Masters. By honing the skills and

talents of young basketball aspirants,

the company provides them with

opportunities to excel and be known

in the basketball industry.

The week-long tournament-style

camp, participated by kids aged

10 to 12 years old, allowed young

basketball aspirants to compete

and work in a team setting,

which simulates a varsity-game

experience.

37


RISING

STARS


PHOENIX PETROLEUM

A Highspeed

Hobby

Rhian Ramos is one of

the Philippines’ most

exciting young actresses.

A modern renaissance

woman, she is also a

competitor in a sport

that is typically maledominated—racing.

Her

penchant for motoring

is what led her to be

the brand ambassador

for the newly launched

Phoenix PULSE

Technology. We sat down

with Rhian to know more

about her newest pulseracing

hobby!

39


RUSH

You started racing as a hobby,

but now you’re taking it more

seriously.

Rhian Ramos: Yeah, I would say

it is still a hobby because in the

Philippines no one really gets paid

for racing, right? But, I do take it

seriously, it’s something that I feel

I need to do throughout the year

to de-stress from my day job.

What have you learned from

being in a male-dominated

sport? What are the

challenges you have to go

through?

Rhian: They are okay to lose

to anyone except to me. So,

sometimes you would think being

a girl in a male-dominated sport

means that, are they going to

take it easy on you? Are they a

little nicer to you? Do they like to

overtake? No! Because no one

wants to be behind a girl. So, it

just makes you a little bit more

competitive. But also, racing is a

giant mind game. So, sometimes

it helps and sometimes it doesn’t.

Sometimes, if they see my car

behind them in the rear view it

makes them a little easier to scare

but sometimes they can up their

game. It depends what kind of

driver you’re up against.

What motivated you to start

racing competitively?

Rhian: It was actually a media

event and I was one of the

celebrity racers that they got to

try it out in front of everyone and

then, when I was done with that

promotion, I just started getting

the feeling that I missed it. I

missed it a lot.

How did you deal with driving

at high speeds for the first

time? Did you get nervous?

How did you cope with that?

Rhian: Well, it was fun

immediately. I only remember one

time when it wasn’t fun. It was my

first accident. I was so scared to

get back in the car but the advice

that I got was, “get back in the car

Rhian Ramos, the face of Phoenix PULSE Technology,

takes a go-cart for a spin at the PULSE launch event.

on the same day.” I mean, after the

hospital check up and everything.

Get back into a car on the same

day because it’s just going to get

in your head. Now, I don’t fear

the accidents anymore because

I totalled that car and I had a

bruise in my knee. Safety gear is

everything, and if you have that

then you have nothing to fear.

What appealed to you about

joining the Phoenix family?

Rhian: It started with their

Premium 98 which I started using

for my Mini Cooper and in our

races. It’s a high-octane fuel and

it does not cause any damage to

the engine.

Because we have six races a

year, you want the engine life

to be healthy. You don’t want to

perform well in one race and then

you don’t know what your engine

will be like in the next race. So

it started when I chose Phoenix

Premium 98, and now it’s even

better with the launch of Phoenix

PULSE technology.

I’m really excited to be part of

the Phoenix family now because

they’re really leveling up their

products. It is easily at par

and competitive with bigger

international products out there,

but it’s homegrown and you get

more bang for your buck.

Would you say there is some

sort of misconception out

there in terms of standard of

fuel in the Philippines and

certain companies?

Rhian: I would say that the

Philippines is generally the kind

of country that wants to copy

whatever the US is doing. So, we

started off really not supporting

local products, but now, it’s like

we’re in this renaissance era

where everyone wants to throw

their support behind a local

product. Personally, I trust a lot

of local products more and more,

and it’s being proven how we have

40


PHOENIX PETROLEUM

items that are just as good

as imported items; and

personally, I would rather

be with a local company

because all the sources are

nearer and they don’t pass

through so many people

before it gets to you. You

don’t know what’s really

happening to the product

before it gets to you, so

I trust more the locally

sourced.

What do you hope to

achieve moving forward,

how do you see yourself

competitively involved in

racing?

Rhian: Acting is my passion

but it’s also my job. The fact

that it’s my job, sometimes

takes away my passion for

it. Now, racing is my passion

and I would never make it

my job because it would

take away my passion from

it.

So far, my experience is all

front-wheel drive racing.

So, I would like to do some

rear-wheel.

I actually only tried karting

last night before the launch

event, so I’m excited to

do this on a more regular

basis. It’s nice because

there’s a bit of drift to it. In a

front wheel-drive, you don’t

get that feeling.

I would probably just

try different kinds of

motorsports. I’m not

sure about drifting, but I

definitely want to try it. My

plan is that by next year, I

need to know how to ride a

motorbike because traffic

is driving me nuts lately. I’m

enjoying the long drives but

not inside the city anymore.

So, I will probably try to get

on a motorbike.

Rhian and the Phoenix Fuel Masters join for a group shot with

Phoenix Petroleum Management.

TV host and actress Rhian Ramos makes her drive come alive

with Phoenix PULSE Technology.

41


RUSH

Guard Matthew Wright looks

to pass at a Philippine Cup

game.

42


PHOENIX PETROLEUM

What fuels a PBA player?

A look at how diet and routine

drive the Fuel Masters’ top stars

If you want to maximize the performance of a powerful car, there are

certain steps you need to adhere to in order to make it run properly.

You need to take it out for a spin so it doesn’t sit in the garage too

long, apply lubricants and engine oil, and fill up the tank with topquality

fuel so it runs cleanly. The same goes for a top caliber athlete.

The demands of a long PBA season can weigh heavily, even for a wellconditioned

pro. Diet, recovery, and discipline are keys to success, so we

spoke to three players from the Fuel Masters’ squad, Matthew Wright,

Jason Perkins, and JC Intal to get a glimpse at what they do to stay at

their best.

Continued on next page

43


RUSH

day so I need to make sure I have

enough energy.

Q: How do you manage to stay

motivated and fit throughout the

season?

Matthew Wright: It’s 80% mental.

But, you know, at the end of the

day, it’s basketball and it’s fun

for me. I’m getting paid to play

basketball, so between the Fuel

Masters and the National team, I

can’t complain.

Rookie Jason Perkins

provides a dual-threat of

outside shooting and postplay

in the paint

Q: What’s your typical game day

routine?

Matthew Wright: Hydrate, drink

a lot of water before the games. I

try to eat as healthy as possible,

but that’s hard sometimes in

Manila. I just stay away from fast

food and get as many carbs and

vegetables as possible.

Jason Perkins: First thing I do

when I wake up is call my mom

so I can hear her voice. I meditate

for about 30 minutes, then get

some fish and some vegetables

like peas. I’ve been a pescatarian

for a while; hopefully, I’ll be a

vegetarian soon. After that, I

play some video games, mostly

NBA 2k, then maybe watch some

shows on Netflix.

JC Intal: For me, it’s all about

sleep. I make sure I get at least

7-8 hours. I like to eat heavy in the

morning—oatmeal, bacon, and

eggs. We practice three hours a

Jason Perkins: Motivation-wise,

I just try to be myself, because I

want to be one of the best in the

league, so that motivates me a

lot. To stay in shape, I’m doing

tremendous. I used to be 250

lbs, but now I’m below 220. Just

keep on the diet, and the trainers

are always here to help us stay

conditioned.

JC Intal: I believe in the saying,

you are what you eat. After 12

years of playing professionally,

I have a good routine and try

to stick to that. It takes a lot

of sacrifice, it’s not easy with

McDonald’s everywhere!

Q: How would you recommend

that an average Filipino

maintain a healthy

lifestyle?

JC Intal: It’s really all

about sleep, food, and

exercise. You don’t

necessarily have to eat

perfectly everyday or

exercise every day, but

trying to stay

disciplined and

maintaining a

consistent routine

is key.

Veteran leader JC Intal

shows no signs of slowing

down in his 11th season in

the PBA

44


Yes, We

Will!


RUSH

Success

Through Faith and Perseverance

Rosalinda Tan’s Binangonan

Phoenix Station was

named the 2017 Mega

Manila DODO Station and

Lubes Generator of the Year.

A mother of three, Rosalinda

embodies the Phoenix qualities of

passion, perseverance, inspiring

work ethic, and business success.

In this edition of RUSH, she

shared her story with readers so

they, too, can find lessons and

inspiration from her experiences.

Running two Phoenix gas

stations—the first being in

Binangonan in Rizal, and the other

in Camarin, Caloocan—has kept

Rosalinda busy since 2014—the

year she became a proud member

of the Phoenix dealer family.

“We decided to become a Phoenix

dealer because we believe that

there is a big future for the brand

and we share the values of the

company,” Rosalinda said.

She admits that her step was not

without challenges, but as soon

as she felt fulfillment in operating

the first Phoenix station, those

challenges became opportunities

for her “to think and aim bigger

and brighter,” as she puts it.

Phoenix has helped me grow to

expand beyond my comfort zone.

Rosalinda Tan, Dealer

2017 Station of the Year and Lubes Generator of the Year

under Mega Manila (Dealer-Owned, Dealer-Operated stations)

Not long after, she opened

the second station, helped by

her confidence in Phoenix’s

sustainable operations and strong

business fundamentals.

“Phoenix has helped me grow

to expand beyond my comfort

zone. Being in the gasoline

station business was very new to

us. Getting another station may

not be comfortable at first, but

Phoenix helped me a lot to take

calculated risks. When studying

a trade area, which includes

getting to know local customers

and businesses, we found that

there will always be a market for

Phoenix,” she said.

Her business model is to make

Phoenix the brand of choice in her

areas. This, of course, only works

when one has confidence in the

brand and is able to convey to

customers that they get the best

value for their money in terms

of products and services—that

customers should feel that their

effort to intentionally visit Phoenix

stations is worth it.

“I always think of our customers

first in order to be consistent in

giving them the best product

and the best customer service.

That way, we always strive

to be one step ahead

of our competitors,”

Rosalinda said.

This takes

dedicated

effort for

everyone

involved.

“The

success

of the

stations

would not be

possible if not

for the hard work

of our forecourt

crew, cashiers, and

the office team. I

personally meet

them quarterly

and build relationships with

them so that I can directly

show my support and care to

them,” she said, adding that she

only considers her stations as

successful when both customers

and employees are happy.

She also keeps in mind that as

employees are key to the success

of a station, they should also

benefit as the stations prosper.

“We give challenging but

rewarding financial incentives to

them for significant fuel volume

increases. Recognition for group

and individual crew like the

‘Lubes Best Seller’ were also

initiated,” Rosalinda said.

She praised Phoenix’s support

on business partners as “most

valuable,” pointing out that the

success of a station cannot be

attributed only to the dealer, the

brand, or the company alone, but

is instead, a team effort.

“Everyone must work hand in

hand to prosper in this very

competitive industry. Trust

between Phoenix and the

dealer is also very important.

At the end of the day, we just

have one vision, that is to be

an indispensable partner of the

people whose lives we touch,”

Rosalinda said.

Proud of her award, Rosalinda

emphasized that the values

she and her team share with

Phoenix—namely, passion and

integrity—are key for her success.

“I believe these are the values

that will carry the business on a

long-term basis,” she said.

46


PHOENIX PETROLEUM

Station of the Year

for Mega Manila

2017

Dealers Rosalinda Tan and

Aaron Tan receive their

award as the 2017 Mega

Manila Station and Lubes

Generator of the Year

under the Dealer-Owned,

Dealer-Operated category

from Phoenix COO Henry

Albert Fadullon and General

Manager for Retail Business

Ericson Inocencio.

Rosalinda

emphasized that the values

she and her team share with

Phoenix—passion and

integrity—are keys to her

success.

47

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