Shell earmarks P3-B annual spending
‘We would continue our disciplined approach regarding capital spending in the next two years, 2025 to 2026’
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‘We would continue our disciplined approach regarding capital spending in the next two years, 2025 to 2026’
Listed oil giant Shell Pilipinas Corp. (SPC) is pumping up capital spending despite a 47 percent drop in first-quarter net income, allotting P2 billion to P3 billion annually from 2025 to 2026 for retail expansion and supply chain upgrades.
“We would continue our disciplined approach regarding capital spending in the next two years, 2025 to 2026. We will be investing a total capex between P2 billion and P3 billion per year in the next two years, and that will be equally split between our mobility business and our supply chain,” SPC chief financial officer Reynaldo P. Abilo said during the company’s annual stockholders’ meeting on Tuesday.
According to Abilo, internal cash flows will fully fund the planned investments.
For mobility, the budget will go to building, upgrading, and refreshing stations “to continuously provide superior customer service and experience to customers.” The rest will enhance operations at Shell’s Tabangao import terminal in Batangas.
“We will be investing in Tabangao to sustain safe and reliable jetting operations, at the same time, improve cost competitiveness and unlock new revenue streams,” Abilo said.
This year, SPC plans to open 15 to 20 new stations next year while reviewing underperforming sites.
In a separate disclosure to the stock exchange, SPC reported a first-quarter net income of P740 million, down from P1.4 billion a year earlier, but did not provide details on the decline.
Operating cash flow, excluding working capital changes, reached P3.4 billion, but net operating cash flow dropped to P190 million due to higher working capital needs.
The mobility segment sustained volumes and grew earnings via new B2B accounts and stronger loyalty program engagement. Commercial Fuels posted a 3 percent volume rise, Lubricants grew 7 percent on expanded reach and online sales, and Aviation Fuels rose 5 percent due to increased demand from clients.
SPC also said it inaugurated a new import terminal in Southern Mindanao to strengthen its regional supply competitiveness.
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