Pilipinas Shell Petroleum Corp. will add 70 more stations next year to boost its sales amid fluctuating global oil prices.
Shell Country Chairman Cesar Romero said the company will build 50 to 70 retail stations next year, 60 percent of which will be built in Visayas and Mindanao.
“This is the investment we’ve set aside every year,” Romero said. Shell is targeting 1,220 new outlets in the next four years.
There are currently 583 retail stations in Luzon, 160 in Visayas and 223 in Mindanao.
Each station amounts to around P25 to P40 million in capital expenditure as its design follows the Shell global group standards, the official added.
“These are company-owned. Budget is this high because we have high standards [for retail stations]. Smaller stations cost around P20 million,” Romero said.
Data from the Securities and Exchange Commission (SEC) show that Shell will allot P18.3 billion from 2016 until 2020, P4.664 billion of which is allotted for 2017.
This would be used for retail, manufacturing, supply and commercial businesses.
“Our volume growth will be very healthy especially in the retail sector. It’s definitely in line with the economic growth,” Romero said.
In its nine-month report, Shell reported a 91 percent increase in its net earnings from P3.33 billion last year to P6.36 billion caused by higher marketing margins, lower cost of sales and lower operating costs.