Phoenix still can’t pay dividends or redeem preferred shares

Phoenix Petroleum [PNX 4.35 unch] [link], the energy retailer arm of “Davao” Dennis Uy’s pseudo-empire, responded to the PSE’s request for an update on PNX’s payment of dividends on its preferred shares and the possible redemption of those preferred shares. In response, PNX said, “we forward the same explanation as we have given on 21 February 2024 that is… ‘As of the moment, there are no retainable earnings and hence, the Company is unable to declare and payout any cash dividends for any class of shares.” PNX said that the lack of retained earnings also makes it impossible for PNX to redeem its preferred shares. The company reiterated that it “continues to remain committed to our obligations while we are still finalizing our strategies.”

MB bottom-line: What else are they going to say? They don’t have any money. I’m not sure what the PSE was hoping to get out of beating that dead horse. Of course, PNX is going to parrot the same deflections and obfuscations as last time by saying that it’s still committed to its “obligations” (yeah, except for the payment of dividends), and that it’s still “finalizing [its] strategies” (for sure bro). The truth is there is no magic bullet. They can’t declare dividends unless there’s a profit, and they can’t generate a profit until they get better at doing business or they sell a bunch of assets.

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