LISTED oil firm Shell Pilipinas Corp. (SPC) has allocated up to P6 billion in capital expenditures through 2026 to accelerate the expansion of its mobility network and further develop its import terminal.
“We will continue our disciplined approach in terms of capital spending in the next two years, 2025 to 2026. We will be investing a total capex between P2-3 billion pesos per year in the next two years and that will be equally split between our mobility business and our supply chain,” SPC Vice-President for Finance Reynaldo P. Abilo said during the company’s annual general meeting on Tuesday.
Mr. Abilo said the allocated capex will be used to “build, upgrade, and refresh” the company’s mobility stations “to continuously provide superior customer service and experience to our customers.”
Part of the budget will also fund SPC’s investment in the Tabangao import terminal in Batangas to sustain jetting operations, improve cost competitiveness, and unlock new revenue streams.
Mr. Abilo said the investments will be funded by internally generated cash flows and operations.
Michael P. Ramolete, SPC’s vice-president for mobility, said the company is targeting to put up 15 to 20 new sites after closing several locations last year that failed to attain expected returns.
“Part of our cost and capital reduction was to hydrate our mobility network to prevent further losses and generate cost savings. So, in 2024, we actually closed 53 sites… These sites failed to meet criteria of expected returns,” he said.
“We will continue year-on-year to review our portfolio each year to ensure that all sites are delivering the target earnings,” he added.
Meanwhile, asked how the partnership between Saudi Arabian oil giant Aramco and Unioil Petroleum Philippines, Inc. will affect SPC’s business, Mr. Ramolete said that “competition continues to be very challenging in our industry.”
“That will obviously give us more things to think about in terms of how to be more competitive with a company like Aramco coming in the country,” he said. “But we will stay the course in terms of trying to defend and grow our business, manage our prices properly where we can afford them, and be more competitive, build new sites.”
In a statement on Tuesday, SPC reported a net income of P740 million in the first quarter of 2025, down 47% from a year ago, amid a volatile market environment and external headwinds from US tariff policies.
The company said earnings from its mobility business grew, backed by business-to-business growth through new customer acquisitions and increased volumes with existing customers.
SPC’s non-fuel retail segments, such as “convenience retail and alliance,” improved compared to the previous year.
Commercial fuels sales volume rose by 3% year on year, driven by stable demand and new customer acquisitions in the construction, mining, and manufacturing sectors.
Lubricants volume increased by 7% due to the expansion of route-to-market strategies, which enabled service in more remote locations and improved coverage in existing areas, with promotions boosting premium penetration.
For 2025, SPC President and Chief Executive Officer Lorelie Quiambao-Osial said the company will focus on “cash, returns, and growth.”
“Where we have been successful and achieved a positive trajectory in 2024, we will build on that. And where we have fallen short, we are adjusting that and continuing to improve that,” she said. — Sheldeen Joy Talavera
