Shell sets P4-B capex for 2019

Business World - - Corporate News - Vic­tor V. Saulon

PILIP­INAS Shell Petroleum Corp. (PSPC) is set­ting aside P4 bil­lion for cap­i­tal ex­pen­di­tures next year, with its re­tail busi­ness cor­ner­ing the big­gest share of the bud­get, its top of­fi­cial said.

“For PSPC, our capex re­mains con­sis­tent at P4 bil­lion,” said Ce­sar G. Romero, the com­pany’s pres­i­dent and chief ex­ec­u­tive of­fi­cer, in a me­dia brief­ing on Wed­nes­day.

“So tat­long taon na kam­ing nasa P4 bil­lion (So we’ve been con­sis­tent at P4 bil­lion for three years now),” he added.

Mr. Romero said the re­tail seg­ment gets the big­gest share of the cap­i­tal out­lay, as the com­pany con­tin­ues to ex­pand its net­work of gas sta­tions.

“P2 bil­lion goes to re­tail to build 50 to 70 sta­tions and then P1 bil­lion for the re­fin­ery, [and] P1 bil­lion for sup­ply,” Mr. Romero said.

“One of the things we promised is pre­dictabil­ity and con­sis­tency. So hope­fully, what­ever it is we said we are able to de­mon­strate that we con­tinue to de­liver on that,” he said.

Mr. Romero said PSPC is on track to de­liver be­tween 50 and 70 new sta­tions this year, while clos­ing 15 to 20 sta­tions that have been by­passed by the road net­work.

“Pro­ject Barako, the bi­tu­men pro­ject, is serv­ing cus­tomers so naka­pag-de­liver na kami as of last Au­gust,” he said.

“We’re hop­ing we will hit 1,100 by end of the year. But at the end of the day what we’re re­ally watch­ing out for is our mar­ket share. It re­mains con­sis­tent at around 33% in re­tail. Not bad for a 1,000 site net­work. Compare that with some of our com­peti­tors who have 2,500 [sta­tions] and they only have 35% mar­ket share,” Mr. Romero said.

In 2018, PSPC has ear­marked a capex of P4.289 bil­lion to cover the year’s out­lay for its re­tail as well as its man­u­fac­tur­ing and sup­ply busi­nesses.

In March this year, the com­pany dis­closed its tar­get cap­i­tal ex­pen­di­ture for 2019 and 2020 at P3.903 bil­lion and P4.196 bil­lion, re­spec­tively.

Cap­i­tal ex­pen­di­tures for re­tail prin­ci­pally re­late to the planned es­tab­lish­ment of new re­tail ser­vice sta­tions, the com­pany had said.

Of this year’s out­lay, up to P2.636 bil­lion had been al­lo­cated for re­tail, and P1.653 bil­lion for man­u­fac­tur­ing and sup­ply. —

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