Shell Pilipinas allots up to P3 billion for capex

SHELL Pilipinas Corp. has earmarked a capital expenditure (capex) budget of up to P3 billion for this year, mainly allocated to its terminals and mobility stations.

About 50% will be dedicated to “improving the asset integrity and efficiency of our terminals across the country,” Reynaldo P. Abilo, Shell Pilipinas treasurer, said during the company’s annual stockholder’s meeting on Tuesday.

The company aims to enhance its primary facility, the Tabangao import terminal in Batangas, inaugurated in 2021.

“About 50% will be dedicated towards enhancing the mobility footprint that we have in the country,” he said.

“We ended 2023 with a total of 1,179 mobility stations, and we are planning to increase our mobility sites by about 20 to 25 new mobility stations this year,” he added.

Shell Pilipinas President and Chief Executive Officer Lorelie Quiambao-Osial said that the company is on track to deliver its fourth medium-range capable terminal this year, and the fifth to be delivered in 2026.

“We aim to be a major player in the energy industry, and we want to continue elevating industry governance standards and advanced energy transition at pace with society,” she said.

Michael Ramolete, vice- president for mobility, said that the company is aiming to grow against its competitors by winning back its customers.

“Obviously, our focus is to be able to win back customers through stronger product claims and integrated fuels and NFR promotions,” he said. “This will enable us to deliver both volume generation and brand premium versus our competitors.”

For 2023, Shell Pilipinas posted a 71% decline in its net income to P1.18 billion which was attributed to the decline in global fuel prices and elevated interest rates. — Sheldeen Joy Talavera