LISTED oil firm Shell Pilipinas Corp. (SPC) plans to spend up to P4 billion in capital expenditure (capex) through 2030 to expand its asset portfolio in line with its medium-term growth strategy, its president said.
“In the medium term, we will progressively grow our asset portfolio. So, I guess medium term is 2027 to 2030 with capex in those years at P3-4 billion,” SPC President and Chief Executive Officer Lorelie Quiambao-Osial said during an investor relations event hosted by the Philippine Stock Exchange on Tuesday.
The allocation is part of the company’s goal of achieving competitive returns through a disciplined cost and capital structure, she said.
For the first half of the year, Ms. Quiambao-Osial said SPC reduced its capital spending to P0.6 billion, which is at par with the previous year and lower than in 2023.
“We will maintain spending between P2-3 billion this year and next year as we manage our cash and our debt levels,” she said.
Among the company’s developments this year is the opening of its fourth import terminal in southern Mindanao, which has a capacity of 60 to 70 million liters.
“That has been quite successful in terms of increasing our market position in South Mindanao,” SPC Vice-President for Finance Reynaldo P. Abilo said.
“It really provides us with competitiveness in the market, making sure that we’re able to reliably supply both existing and new customers in that particular area of the business.”
Ms. Quiambao-Osial said the company is making progress on opening another terminal in the Visayas to strengthen SPC’s position in the region.
Along with these terminals, the company operates import terminals in Batangas, northern Luzon, and northern Mindanao.
For the second quarter, SPC reported a 34.9% drop in its attributable net income to P221.73 million amid lower net sales.
Ms. Quiambao-Osial said SPC will pursue a “defend, grow and delivery” strategy to grow the company’s business.
“We know that there are risks and there are headwinds, but we’re ready to take them on with agility, customer focus, and with a winning performance culture,” she said.
“We are working very hard to put the company back, and we are on track in terms of confidence and ensure that we deliver long-term value for our shareholders.”
SPC, the second-largest player in the downstream oil industry, operates a network of over 1,100 service stations nationwide. — Sheldeen Joy Talavera