Shell investing Php20B in 5 years

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Pilipinas Shell Petroleum Corporation (PSPC) eyes to grow its strategic priorities with up to Php20 billion worth of investments in the next five years, to prepare for increasing demand in the domestic market as the economy recovers from the COVID-19 pandemic.

PSPC President and CEO Cesar Romero said the firm’s yearly capital outlay of Php3 billion to Php4 billion has always been consistent with the investment growth trajectory set by the company even before the COVID-19 pandemic. 

Shell said it will have three major changes in its strategic growth, namely: the conversion of its old Tabangao refinery, the business model shift from retail stations to mobility sites, and the lowering of carbon operations.

For the ongoing transformation of the firm’s old Tabangao refinery into an import facility, wherein it will invest an additional Php1 billion to Php2 billion in the next three years. Shell closed the refinery last year, as it was already deemed unprofitable.

Meanwhile, the shift of its retail business model from gas stations to mobility sites would cater not only to the usual vehicles, but also for cyclists and pedestrian customers. 

PSPC particularly aims to build 60 to 80 new sites per year to reach its overall target of having 1,500 mobility sites by 2025, achieving its goal to grow alongside the economy by increasing fuel volumes by around four percent annually and convenience retail profits by 15% per year. 

Shell would particularly invest Php1.8 to 2.4 billion for the new mobility stations and two more medium-range import terminals, which would be located in Northern Luzon, Visayas, and Mindanao. The plans come as the company opened its new import facility in Subic late last year.

As for the lowering of carbon operations, Shell is gearing up to innovate low carbon and carbon offset products by implementing cutting-edge technology and the expertise of its workforce.

PSPC chief finance officer Reynaldo Abilo said that the company wouldn’t need to borrow to fulfill its five-year investment program.

Shell reported a Php16.2 billion net loss in 2020 due to Tabangao’s closure and the economic slowdown caused by the pandemic.

 

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