Dennis Uy on Philippines oil | Phoenix Petroleum | Video

Transcript

Dennis Uy founded Phoenix Petroleum in 2002. Since then, it’s grown to be the number one independent oil company in the Philippines – and one of he nation’s leading brands. He talks about the business opportunities presented by the Philippines’ 1998 Oil Deregulation Law, the development of Phoenix Petroleum, and the future opportunities for the oil industry in the Philippines.

World Finance: Let’s start with that initial decision to establish Phoenix Petroleum: how important was the oil deregulation law, passed in 1998, in convincing you there was a real business opportunity?

Dennis Uy: Well, the oil deregulation law paved the way for the birth of Phoenix. Without it we wouldn’t be here! The decision was very simple. The industry used to be dominated by three companies, and when you open up an industry where it was dominated by only three companies, there’s really a big chance for us to get market share.

“It’s always our service and our people that are a distinct advantage”

World Finance: Phoenix Petroleum began life in the southern island of Mindanao, not like many other companies here in the capital Manila. So what challenges has that presented for you, and how have you overcome those challenges?

Dennis Uy: For us to start in the southern part of the Philippines was not by choice, it was by chance. It was just that I do my business there, I was born there.

We started there, and luckily we were able to expand nationwide. It’s always a challenge, even until now, to gain brand acceptability. For the past five years, since we expanded outside Davao, our brand and our stations have been gaining acceptability, and we thank our consumers – our customers – for that.

But every day is a challenge, to improve our brand and our service. It should be acceptable to all.

World Finance: So what have been the core products and services that have set you apart from other companies, other competitors, as you’ve grown?

Dennis Uy: The petroleum industry that we’re in, it’s a commodity. That makes our products no different from our competitors: it’s always our service and our people that are a distinct advantage. As the saying goes, our people are our greatest advantage. The people and the culture of the company is what sets us apart from all the others.

World Finance: Looking ahead, what are your future plans for Phoenix Petroleum?

We hope to sustain the growth that we’ve been experiencing in the past five years, of at least 15 percent per year. The next five years should be a period of growth – maybe a bigger market share, more stations: going from 300 to at least 500. And of course, having a more established brand, and a stronger company, balance-sheet wise.

“Other Asian countries have three or five times more stations per capita: there’s a lot of room for growth”

World Finance: Let’s look at the wider picture: what are the opportunities for the oil sector here in the Philippines?

Dennis Uy: We are into retail and commercial distribution, so in terms of retail there’s a lot of potential. In the industry there’s only 4,600 stations, compared to other Asian countries who have three or five times more stations per capita. So, there’s a lot of room for growth.

We’ve been regulated for the past 25 years, and as you said, in 1998 the industry was opened to everybody. So it’s only 15 years since it was deregulated, and close to 2,000 stations were opened during those 15 years. So the next 15 years should see more stations opened, to the convenience of motorists.

World Finance: Finally, what’s your assessment of the Philippines as a destination for global investors? What should people be looking for here?

Dennis Uy: As the saying goes, it’s more fun here in the Philippines to invest. The country has been upgraded to investment grade, and I think our president has done a good job in promoting and laying the groundwork for at least a level playing-field for all investors. We have a population of 100 million, and growing: a big market. So, it’s time for people to invest and companies to invest here.

World Finance: Dennis Uy, thank you

Dennis Uy: Thank you.