Dennis Uy-led Phoenix Petroleum has gone on a “capital light” expansion while implementing a comprehensive financial management program, as it aims to recover from the effects of the COVID-19 pandemic on its business.

The move was announced following Phoenix’s Php4.25 billion refinancing, comprising of the settlement of Php3 billion in short-term commercial papers (STCP) last December 5, 2020 and the redemption of Php1.25 billion worth of preferred shares on December 18.

Phoenix’s capital light expansion strategy focuses on strategic partnerships and an integrated franchising model across its fuel and liquefied petroleum gas products, convenience stores, and payments.

“It has been a turbulent year, but we have been making headways in our engagements with creditors, and are ending the year with renewed strength and positivity. We are making significant progress in ensuring the company’s long-term viability as a business to come out a healthier and stronger enterprise after this pandemic,” Phoenix Petroleum President Henry Albert Fadullon said in a statement.

The STCP Series C was refinanced by a long-term loan, enhancing the company’s liquidity and relieving pressure on immediate cash resources. Meanwhile, the redemption of the PNX3A preferred shares is expected to generate savings on the company’s capital costs.

“Apart from preserving our resources through savings in capital and operational expenses, we are grateful for the continued support and confidence of creditors. These are the initial steps and we assure our financial partners of our resolve to deliver on our commitments,” Fadullon added.

To date, Phoenix has generated over Php800 million in savings from operating expenditures and Php1.5 billion from capital expenditures.

Davao-based Phoenix, which overtook Caltex as the country’s third-largest oil player in 2020, posted a Php95 million net loss in the first nine months of last year largely due to the pandemic.