In what appears as a “survival of the fittest” industry, new player Phoenix Petroleum Philippines Inc. is currently taking calculated step into cornering strategic partners to help shore up the company’s chances at pursuing expansion plans and business growths.

The oil firm, in a press statement, disclosed that it is “in discussion with potential strategic business partners and financial investors who will help the oil company in its bid of becoming the number one independent player in the retail fuel business.” It did not specify though if these are local or foreign investors.

With the company’s previous pronouncements on building up its nationwide distribution network, it noted that the entry of strategic partners will bring it notches ahead to that goal.

Phoenix Petroleum chief finance officer Francis Caluag said the company “is open to engaging prospective business partners who will participate meaningfully in our next stage of growth.”

The capital infusion from partners, he said, “shall be used for additional working capital needed to support the expansion of our retail distribution network.”

As this developed, the company reported its net income to have gone up to P589 million during the first quarters of the year, yet P497 million of that represents the booked “excess of fair value over acquisition costs.”

For the quarter alone, Caluag noted that the company posted “15% rise in net profit,” which has been attributed to “higher fuels sales volume which was 66% over the comparative period in 2008.”

Given the oil firm’s upswing performance, company officials noted that this thrives the best time for them to draw on prospects of strategic expansion.

Caluag added “Phoenix Petroleum would like to take advantage of the growth opportunities obtainable from building additional depots and retail stations nationwide in line with our objective of being the leading independent station in retail.”

He further emphasized that with an expanded network, the company would be able to “ensure a reliable supply of quality fuel and this requires us to diversify our fuel procurement from both domestic and regional sources.”

Henceforward, Phoenix Petroleum chief operating officer Romeo De Guzman hinted that the ‘adversarial impact’ of the imposition of the oil price freeze “will be a challenge to the company as it tries to meet its last quarter goals.” The Palace-issued Executive Order 839 effectively froze prices to October 15, 2009 levels amid surge in prices in the world market.

“Definitely EO 839 has an impact on our sales in Luzon,” De Guzman averred, though they are anticipating some balancing in the performance of their retail networks from Visayas and Mindanao.