Top Line Business Development Corp. said its planned Cebu fuel depot expansion and related infrastructure improvements could cost up to PHP 1 billion as the company moves to strengthen fuel storage capacity and supply capabilities in the Visayas.

In a disclosure, the company clarified that only a portion of the proceeds from its planned follow-on offering of Series A perpetual preferred shares will directly fund the project, while the broader expansion may be financed through multiple sources and implemented in phases.

Top Line said PHP 200 million from the offer proceeds has been earmarked for the construction and/or renovation of a fuel depot in Cebu, with the amount potentially increasing to as much as P440 million if the oversubscription option is fully exercised.

The company, however, noted that the total development cost of the depot and related upgrades could reach PHP 1 billion depending on the scale and capacity of the facility.

“Such expenditures may exceed the specific amount to be funded from the offer proceeds and may be undertaken in phases, using a combination of offer proceeds, internally generated funds, and other financing sources, subject to management approval, market conditions, and operational requirements,” Top Line said.

Top Line also said it expects capital expenditures in 2026 to exceed the approximately PHP 1.19 billion incurred in 2025, primarily to support ongoing expansion initiatives and operational improvements.

“Upon completion, the depot is intended to support the Company’s importation activities by providing fuel storage, handling, and distribution capabilities, enabling the Company to maintain optimal inventory levels, improve supply reliability, and enhance operational efficiency across its trading and retail segments,” the company said.

Top Line added that management does not expect the expansion plans to negatively affect its financial condition or operating performance, saying the investments are expected to enhance operational capacity and strengthen long-term growth prospects.

How significant do you think expanded private fuel storage infrastructure in Cebu could be for strengthening energy security and supply reliability in the Visayas and Mindanao?

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