MANILA, Philippines– Dennis Uy’s Phoenix Petroleum has deferred the payout of cash dividends to holders of its Series 4 (PNX4) preferred shares to “preserve resources.”

Phoenix told shareholders that the deferment of the fourth quarter dividends was part of its move to “improve operations and ensure the long-term sustainability of the business.”

Last November, Phoenix approved the payout of P18.92 per outstanding PNX4 preferred share and was payable on November 22.

But in the same month, Phoenix told the Philippine Stock Exchange that it would move the date to December 19.

“Notwithstanding, we maintain our commitment to our accountabilities and stakeholders and will provide the necessary updates as soon as possible,” Phoenix said.

As of writing, Phoenix has not announced the new date.

On Tuesday, December 20, the value of PNX4 dropped by 27% since the deferment and is trading below par value at P510 apiece.

Phoenix has been struggling financially amid the global economic downturn and the pandemic, posting a net loss of P1.1 billion as of end-September. For the first three quarters of the year, revenues dropped 2.6% to P99 billion.

Expert Speaks

[Vantage Point] Quo vadis, Dennis?

Last September, a Batangas court froze assets of Phoenix after it ruled in favor of Lucio Tan-led Absolut Distillers in its bid to collect P157 million from Uy’s oil company. The court eventually lifted the freeze order after the two companies reached a payment agreement.

Uy has been selling off his businesses after a debt-driven buying spree during the presidency of Rodrigo Duterte. –Rappler.com