Pilipinas Shell Petroleum Corp. (PSPC) said it will sustain its P3 – to P4-billion annual capital expenditure over the next five years on the back of a projected recovery in fuel demand to pre-pandemic levels by next year.
In a virtual briefing yesterday, Cesar Romero, PSPC president and chief executive officer, said the continued investments will be anchored on three major changes in the company’s strategic priorities.
Romero said first, PSPC will transform its supply chain from manufacturing to full importation.
The conversion of the Tabangao refinery in Batangas has reduced capital and operational expense exposure and lessened the impact of price volatility to their operations.
But Romero said PSPC will add two more import terminals, one each in Visayas and in Mindanao, to support the company’s existing three import terminals.
PSPC is also changing its business model from retail to mobility which will not only cater to cars and standard vehicles, but to cyclists and pedestrian customers as well.
Pilipinas Shell aims to build 60 to 80 new mobility sites per year to reach its overall target of having 1,500 sites by 2025.
Romero said PSPC expects to grow alongside that of the economy.
The company targets an annual growth of 4 percent in fuels volumes and by 15 percent per year in convenience retail profits.
Also in its five-year plan is the shift to lower carbon operations as well as the introduction of lower carbon products and services.
To achieve this, PSPC plans to further boost the use of energy efficient materials in its operations and to expand programs related to carbon emission offsetting.