MANILA, Philippines—Independent player Phoenix Petroleum Philippines Inc. is embarking on an aggressive expansion plan that will see the construction of around 100 gas stations in 2012 alone.
In a briefing Friday, Phoenix Petroleum AVP Raymond T. Zorrilla said the company would spend roughly P500 million to put up around 40 gas stations in Luzon next year; 20 in the Visayas; and 40 more in Mindanao, in a bid “to formalize our claim to be the leading independent player.”
“We have a vision to become the leading independent player both in terms of network share and market share,” Zorrilla explained.
Should all the 100 stations be completed within 2012, Phoenix Petroleum would have a total of 320 outlets by the end of next year, from an estimated retail network count of 220 stations by end-2011. The additional 100 stations are expected to further jack up the company’s sales retail volume by 25 percent, and its commercial trade sales by 25 percent, he added.
Zorrilla clarified that the P500 million budget—which would be sourced from internally generated funds or savings and through a loan facility—was meant only for the retail network expansion and would not include other planned capital expenditures of Phoenix Petroleum.
According to Zorrilla, the company also targets to put up next year three more depot terminals in the Visayas alone, to support its growing retail network.
“We’re building additional depots next year. We have three more, which we intend to put up in Iloilo, Bacolod and Cebu. Definitely, we’re also planning expansions of the existing terminals in Davao,” Zorrilla disclosed.
Recently, Phoenix Petroleum opened a depot in Cagayan de Oro. The terminal has a capacity of 37 million liters, which can be expanded by another 13 million liters. This facility will serve as an import terminal to cater to clients in North Mindanao, he said.
At present, Phoenix Petroleum has depots in Davao City, Davao del Norte, Aklan, Surigao, Zamboanga and Batangas. The 50-million-liter Batangas depot, located at the Phoenix Petroterminal and Industrial Park, is currently the company’s largest fuel storage establishment.
In August this year, Phoenix Petroleum successfully concluded a P750-million notes facility agreement to finance the company’s capital expenditure program. BDO Capital and Investment Corp. was tapped as the lead arranger for the facility.
The P750-million facility was used to fund Phoenix Petroleum’s P1.5-billion capital expenditure program for 2011, which included the construction of additional stations and fuel storage terminals.