Shell Pilipinas earmarks P2B-P3B mainly for import terminals upgrade
MANILA, Philippines — Oil giant Shell Pilipinas Corp. is spending up to P3 billion in 2024 to enhance the efficiency of its import terminals in the Philippines.
During the company’s annual stockholders’ meeting on Tuesday, Shell Pilipinas vice president for finance Reynaldo Abilo said the firm’s capital expenditure ranged from P2 billion to P3 billion this year.
Abilo said half of the entire budget “will be dedicated [to] improving the asset integrity and the efficiency of our terminals across the country,” specifically its main import facility in Batangas province.
Shell Pilipinas President and CEO Lorelie Quiambao-Osial said the firm’s fifth terminal “is underway.”
“We are on track when it comes to the planned medium-range capable [import] terminals,” Osial said.
At present, Shell Pilipinas has four import facilities in Tabangao in Batangas City, Cagayan de Oro City, Subic town in Zambales province, and Santa Cruz town in Davao del Sur province.
READ: Pilipinas Shell eyes five import terminals by 2025
The other half of the capex will be used in “enhancing the mobility footprint” of Shell Pilipinas nationwide by adding about 20-25 stations this year.
Expanding mobility footprint
As of end-2023, the oil company has 1,179 mobility stations in the archipelago, mainly fuel stations.
Abilo said Shell Pilipinas “will obviously try to grow at par and even more versus industry” after the firm incurred a substantial decline in earnings in the past year.
“Our focus is to be able to win back customers and win more through stronger product claims and integrated fuels and NFR (non-fuel retail) promotions. This will enable us to deliver both volume generation and brand premium versus our competitors,” he added.
The company also intends to leverage its loyalty program Shell Go+ and dive deeper into the business-to-business segment to expand the business.
Shell Pilipinas reported a net income of P1.2 billion in 2023, a 71-percent drop from a year ago, due to certain macroeconomic factors including “elevated interest rates and decline in global fuel prices.”
