Pilipinas Shell earmarks P20B for capex in next 5 years
Pilipinas Shell Petroleum Corp. expects to spend within the next five years up to P20 billion to follow through with the transformation of its former refinery in Batangas, build two more import terminals and push its “mobility site” concept for its fuel stations.
“The company is strongly positioned to meet the resulting recovery of energy demand as well as the growth in consumer spending,” Pilipinas Shell president and chief executive Cesar Romero said in a briefing.
“Moreover, we intend to do our share in contributing toward Royal Dutch Shell’s aspirations to be a net-zero carbon business by 2050,” Romero told reporters.
He said the oil giant’s business in the Philippines remained essentially the same except it would now import all of its products instead of producing 70 percent of its offering in Tabangao, Batangas province.
The business model is being transformed from retail to mobility.
“We will have P3 billion to P4 billion in capital expenditures every year for the next five years,” Romero said. “We will invest more in retail and improve the efficiency of the supply chain.”
Of this capex, 60 percent is earmarked for the opening of 60 to 80 mobility sites every year to meet the target of having 1,500 mobility sites by 2025.
Romero said a mobility site would not only cater to cars and standard vehicles, but would also have offers in e-mobility for cyclists and pedestrian customers.
He added that their goal was to grow alongside the Philippine economy by increasing fuel volumes by about 4 percent yearly and convenience retail profits by about 15 percent a year.
“We are making the necessary changes to ensure the future of energy for Filipinos and help the Philippines move forward,” he said. “We are confident about driving fuel mobility and getting the country back on track as it recovers from the impact of the pandemic.”
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