MANILA, Philippines – Pilipinas Shell Petroleum Corporation (PSE:PSPC) clarifies the news published by Philippine Star on its website entitled “Shell allots P2.8B to put up new stations next year” wherein Cesar G. Romero, PSPC President, was quoted.
According to a missive signed by Erwin R. Orocio, PSPC Corporate Secretary, addressed to the Philippine Stock Exchange (PSE), the company would like to confirm that Pilipinas Shell is planning to put 50 to 70 stations per annum starting next year towards 2020. The majority of the locations will be in the south. In addition, the determination of specific areas and mix between dealer-operated and company-owned retail stations and dealer-owned and operated stations would be done after the decision’s finalization.
The company also clarified that the figures written in the news article are projected capital expenditures, which cover retail, supply, manufacturing, and commercial sectors.
As per the electronically published report on Philippine Star’s web portal, the domestic Shell company is contriving to develop 70 stations in order to support its sales volume increase in the midst of volatile oil values.
Romero stated that next year would mark the company’s development of 50 to 70 new retail stations. Relatively, 60 percent of the count will be in the Visayas and Mindanao. The rest or 40 percent would be placed in Luzon.
At present, Pilipinas Shell has 583 sectors in Luzon, 160 in the Visayas, and 223 in Mindanao. In total, there are 966 retail stations across the country. By 2020, the company is aiming for a network of 1,220 outlets.
Romero added that the company is anticipated to allot P25 million to P40 million for each company-owned station since they have to comply with Shell’s global group standards on the design. According to him, smaller stations may be valued at roughly P20 million.
The network expansion of Pilipinas Shell is valued in a range of P1.25 billion to P2.8 billion. In relation to its disclosure with the Securities and Exchange Commission (SEC), it will allocate P18.3 billion from this year to 2020. Specifically, this year would take in P2.872 billion, next year would have P4.664 billion, and 2018 has P4.327 billion. There will be accounts of P4.430 billion and P2.025 billion for 2019 and 2020, respectively.
Romero stated that Pilipinas Shell still projects a robust performance by the year-end, specifically in the retail business. He claimed that the firm still has a healthy volume growth, especially in retail. The measure also streamlines economic growth.
Pilipinas Shell also eyes to enter a renewable energy venture as part of its worldwide goal in diversifying clean power sources.