Shell Pilipinas Corp. (SPC) has earmarked up to Php 3 billion for capital expenditures (CAPEX) in 2024 to support its expansion plans.
In a recent report by BusinessMirror, Vice President for Finance and Chief Risk Officer Reynaldo Abilo said the company aims to spend between Php 2 billion and Php 3 billion this year.
The CAPEX will be primarily used to improve service stations. Approximately 50 percent of the budget will be dedicated to enhancing the asset integrity and efficiency of SPC’s terminals throughout the country, with a particular focus on the Tabangao import facility.
Meanwhile, the remaining 50 percent will be allocated to expanding the company’s mobility footprint within the Philippines.
By 2025, SPC plans to operate five import terminals. Currently, the company has established three terminals in Batangas, Subic, and Cagayan de Oro. Construction is underway for a fourth medium-range capable import terminal in Darong, Davao del Sur, which will address the increasing energy needs of the southern region.
SPC, the second-largest oil company in the Philippines, operates over a thousand retail stations nationwide. Having ended 2023 with 1,179 mobility stations, the company plans to add approximately 20-25 new mobility sites in 2024 which will serve as the company’s retail stations.
In 2023, SPC’s net income dropped to Php 1.2 billion from Php 4.1 billion in 2022, due to higher interest rates and a decrease in global fuel prices.
Despite these challenges, Shell Pilipinas managed to overcome obstacles by increasing sales volumes strategically and focusing on premium products.
