Still unable to rise from the ashes<\/strong><\/p>\n\n\n\n Dennis Uy\u2019s Phoenix Petroleum Philippines, Inc. (PNX) restated its 2021 Annual Report to reflect a loss of P885.6-Million from the previously reported loss of P462.0-Million. The company further reports almost tripling its net losses in 2022 to P3.2-Billion, citing the sudden surge of petroleum prices in the global market following Russia\u2019s invasion of Ukraine. The price volatility resulted in inventory losses as inventory plunged from P5.1-Billion in 2021 to P1.4-Billion at the end of 2022.<\/p>\n\n\n\n Topline loss worsened by impairment losses<\/strong><\/p>\n\n\n\n PNX\u2019s gross losses for the year was reported at P393.1-Million, but this was compounded by total impairment losses of P647.6-Mn. The company\u2019s auditor, P&A Grant Thornton, also flagged \u201cpossible impairment indicators\u201d on some of its joint ventures, PP&E, investment properties, and ROU assets which would total around P3.8-Billion.<\/p>\n\n\n\n Debt still an issue<\/strong><\/p>\n\n\n\n The auditor also flagged the company\u2019s liquidity risk as the difference between its liabilities and available resources almost doubles to P16.6-Billion from P8.6-Billion the previous year. This comes as PNX has P31.4-Billion in debt coming due in six months and P19.3-Billion coming due within a year. The company also remains in breach of its debt covenants with various banks, which has caused its available credit line to drop to P3.4-Billion from P11.6-Billion. <\/p>\n\n\n\n Almost all the major Philippine banks are exposed to PNX debt, with BDO leading the pack, followed by government-owned Landbank and DBP. Listed banks RCB, PNB, BPI, UBP, and AUB are also among the company\u2019s top ten creditors. <\/p>\n\n\n\n Trading suspension likely to be lifted soon<\/strong><\/p>\n\n\n\n PNX and its preferred shares have been suspended since mid-May for failing to submit its annual report. Now that the company has finally submitted its reportorial requirements, and the Board has likewise approved the release of its 1Q 2023 and 2Q 2023 reports, we expected the trading suspension to be lifted soon. However, given the company\u2019s worsening financial condition, it would be best to stay away from PNX for now.<\/p>\n\n\n\n