PTT earmarks million for coffee-fuel expansion mix

On its shifting investment priorities, Thai firm subsidiary PTT Philippines indicated that it will fork out R500 million in fresh capital next year on mixed expansion focused on beefing up retail network, including foray into the Japan market; and to be complemented by its Café Amazon chain.

That will then partly buoy prospects of 17-percent compounded annual revenue growth that the company will be targeting over five years – hitting a level of R28 billion in 2018 from this year’s R20-R22 billion, according to PTT Philippines Trading Corporation General Manager Danilo Alabado.

As noted by PTT Philippines President and Chief Executive Officer Sukanya Seriyothin, bulk of the expansion spending will be “for the opening of more than 30 gasoline stations and about 12 Café Amazon stores in various parts of the country, particularly in Luzon.”

She highlighted that the oil firm surpassed retail network expansion target this year, hence, it has gained leverage to even do better in 2018.

Seriyothin said the company remains upbeat on “the business climate in the Philippines that’s why from 20 stations that we targeted this 2017 which we actually exceeded, we are targeting more than 30 stations next year.”

“Following its diversification into coffee business, PTT started investing in the Philippines to complement its more than 1,850 stores in Thailand and other parts of Asia, including one in Japan,” the company said.

Nevertheless, there would be some notable landscape change in the investment plan with its eye on 100 Café Amazon outlets in the near term.

“By the end of this year, we will have a total of six (6) stores that are fully operational,” PTT Marketing Director Thitiroj Rergsumran said, emphasizing that 12 more are anticipated to open next year.

Overall, it was indicated that PTT’s investment expansion would command investment of R5 billion to R6 billion in the next five years.

PTT said it is “bullish in its investment in the Philippines with more than R500 million allocation for its continuing expansion in 2018 for both its oil and non-oil businesses in the country.”

On the fuel side, the company already has 120 gasoline stations under its sleeve, 15 of which are in Metro Manila; and the rest are in various regions of Luzon and Visayas markets.