MANAGEMENT

BOARD OF DIRECTORS

Domingo Uy
Dennis Uy
Romeo de Guzman
J.V. Emmanuel de Dios
Socorro Ermac-Cabreros
Paul Dominguez
Joseph John Ong
Cherylyn Uy
Monico Jacob
Consuelo Santiago

EXECUTIVES AND SENIOR MANAGERS

Dennis Uy

Alan Raymond T. Zorrilla

President and Chief Executive Officer

Vice President for External Affairs, Business

Romeo de Guzman
Chief Operating Officer
Joseph John L. Ong
Chief Finance Officer

Development, and Security

William M. Azarcon
Vice President for Operations, Transport,
Aviations, and Engineering
Edwin M. Jose
Asst. Vice President for Sales Mega Manila
Chryss Alfonsus V. Damuy
Vice President for Finance

Joselito G. de Jesus
Asst. Vice President for Sales Luzon
Upcountry

SUCCESSION PLANNING

The Board
- The Board Members will have the main responsibility in
appointing the new Executive Officer or Director.
- They will vote on who will be the next Executive Officer or
Director of the company.

The Outgoing Executive Officer or Director

- If planned, the executive should contribute to help the
transition be easier and smoother.
- In case of planned absence or resignation, he or she should
inform the Board of the planned resignation or absence.
- If unplanned or an unexpected event, he or she must help
with the best of her ability to recommend someone to the
Board.

The Senior Management Team or The Executive Officers

- They will look for possible candidates for the vacant position.

The Stakeholders
- They are tasked to oversight the new Executive Officer or
Director and report if an unfavorable character is seen.

Plan Implementation
I. Temporary Absence - the Executive Officer or Director will
return one the reason of absence is resolved.
II. Unplanned Absence - unexpected absence.
III. Short-term Absence - lasts for 30 days or less.
IV. Long-term Absence - lasts for more than 30 days.

Temporary, planned or unplanned absence

Temporary Staffing
Cross-training Plan
Appointing of an acting Executive Officer or Director

Plan Implementation
I. Unplanned Absence - unexpected absence.
II. Permanent Absence or Resignation - Executive Officer or
Director is firm with his decision of not returning to his
position.

Permanent unplanned absence

Appointing of an Executive Officer or Director
Cross-training Plan

Planned Resignation
Search process

COMMERCIAL

Industry

Products

Customers

Competitors

Petron Corporation
Pilipinas Shell Corporation
Chevron Philippines

TECHNICAL

LEGAL

Corporate Records

The company was originally named: Davao Oil Terminal Services

Corporation (DOTSCO) but by July 11 2007 it was renamed to the familiar
Phoenix Petroleum corporation
The company publicly is listed in the PSE and is the first oil company to be
so
Its SEC Identification number is: A200207283
While its BIR Tax Identification code is 006-036-274

Share Structures

The Company has two stocks Common and Preferred

The preferred shares listed at 1 billion is the first ever issued by an
independent oil company
Phoenix Petroleum is the only oil company to have both Common and
Preferred shares listed in the PSE

Debt

The Annual Report of the company shows a debt of: 13,843 million pesos
Assets are divided into two major categories: current and noncurrent the
former worth 13,576 million and the latter worth 11,424 million for a total
of 25 million
In 2014 the Debt to Equity ratio was at 2.44:1 due to higher accounts
payable trade.

Agreements

Phoenix Petroleum on September 2014 was able to gain two supply agreements
with the Gokongwei Group.
A 10 year supply contract with Cebu Pacific and as part of the agreement
Phoenix Petroleum constructed a depot in Consolacion Cebu where Jet A-1 fuel
will be stored for the use of Cebu Pacific.
An agreement with Universal Robina Sugar Milling Corp wherein the latters
ethanol product shall be purchased by Phoenix Petroleum and be distributed.
Also an agreement between Phoenix and Philippine National Bank was made
regarding the retirement benefit plan of the employees of the former. The fund,
established as a Phoenix Multi-employer Retirement Plan, is a non-contributory
plan for the retirement, disability, death or separation benefits of the eligible
employees or beneficiaries of PNX and its subsidiaries.

Agrements

Member, Management Association of the Philippines

Member, European Chamber of Commerce of the Philippines
Member, Davao City Chamber of Commerce and Industry
Member, American Chamber of Commerce Davao Chapter
Member, Young Presidents Organization Philippine Chapter
Signatory, Integrity Pledge, Integrity Initiative of the Makati Business Club
and European Chamber of Commerce of the Philippines

Compliance

In December 23 2015 A Certificate Of Permit To Sell Or Offer For Sale

Securities was issued.
In 2010 Phoenix Petroleum conducted a share sale where it issued 5
million in preferred shares at an issue price of Php100 per share by way
of private placement this offering raised the proceeds by 500 million.
4 years after the issuance of the first tranche, Phoenix Petroleum
continued the share sale where it raised another 500 million with the SEC
approving of it

Litigation

The Bureau of Customs in May 2011 filed to the Department of Justice a 5

billion smuggling case against Phoenix.
Phoenix was being sued for non-payment of excise and value added taxes
(VAT) and non-submission of import documents such as invoices and bills
of lading for several importations of various petroleum products with a
combined dutiable value of P5,144,035,000 between June 2010 and April
2011.
by November 2011 the Department of Justice had dismissed the case
against Phoenix as the company was able to pass documents proving that
the company has in fact paid all dues and fees required and proving the
accusations of BOC as unfounded.

Antitrust

The extremely aggressive strategies might allow Phoenix Petroleum to

choke the market and obtain a monopoly that might cause the growth of
the market to stagnate
The aggressive marketing strategy of the company makes it difficult for
other companies to get a foothold in the market thus a monopoly could
established by the company.
Lastly the alleged smuggling issue of the company has hurt the public
trust of the company

Taxation

Corporation Tax
-

Generally, 30% of the net taxable income.

Income Tax Holiday (ITH) for 5 years from 2010 and 2012

Corporation Tax
Location of Project

Date of Registration

Period

ITH Expiry Date

Calaca, Batangas

February 26, 2010

5 years

February 25, 2015

Davao Expansion

May 14, 2010

5 years

May 13, 2015

Zamboanga

November 25, 2010

5 years

November 24, 2015

Bacolod City

May 10, 2012

5 years

May 9, 2017

Cagayan de Oro City

May 10, 2012

5 years

May 9, 2017

Corporation Tax
Upon expiration of such tax holiday, the companys income from the
respective depots will be subject to prevailing income tax rates.

Issues on Corporate Tax:

-

If the company fails to meet certain conditions imposed by the BOI, it may
lose its right to the ITH. Hence, the company may not be able to continue
to avail of the benefits under the ITH, which will affect the companys
profitability.

The company should, therefore, monitor its compliance with the

requirements and conditions imposed by the BOI to mitigate such risk.

Other Taxes:
-

3% tariff duty on imported crude oil

7% on imported refined petroleum products
This was removed in 2010
12% VAT on the sale and importation of petroleum products
Excise tax

Environment

Compliance
The company is required to obtain from the Oil Industry Management Bureau (OIMB) of
the DOE a Certificate of Compliance with the necessary requirements needed before
engaging in the business of selling petroleum products. These requirements include:
1)
2)
3)

Prior notice to DOE.

Fire Inspection Certificate issued by the Bureau of Fire Protection (BFP).
Environmental Compliance Certificate (ECC) or Certificate of Non-Coverage
(CNC) issued by the Environmental Management Bureau (EMB) of the
Department of Environment and Natural Resources (DENR)

Compliance
-

The Downstream Oil Industry Deregulation Act also requires all petroleum
product transport containers of the Corporation to be registered with the
Industrial Technology Development Institute of the Department of
Science and Technology.

Compliance: Permits
-

The company is required to obtain a permit or clearance from the DENR

prior to any importation of slop/used/waste oils, sludge and similar
petroleum products.
Environmental Compliance Certificate
Water Discharge Permit
Environmental Compliance Certificate, and
The Permit to Operate a standby generator from the DENR.

Compliance: Other Requirements

-

The Biofuels Act of 2006 calls for the mandatory blending of biofuels of oil
companies into their oil products to offer ethanol-blended gasoline
products.

A 5% blend of ethanol is mandated for gas by 2009 and 10% by 2011. For
diesel products, a 1% blend of biodiesel was required by 2007 and 2%
starting 2009

Issues:
-

Operating cost
Earning sufficient capital expenditures on an ongoing basis is necessary to
maintain compliance.