Shell Pilipinas sets up to P3 billion for 2024 capex

Shell Pilipinas Corp. on Tuesday said it has earmarked up to P3 billion for its capital expenditures this year, which will mostly be spent to boost its asset integrity and widening its mobility footprint across the country.

In a virtual briefing, Shell chief financial officer Reynaldo Abilo said the company is looking to spend between P2 to 3 billion this year, as the company seeks to reduce its spending through working capital optimization.

“About 50% of that will be dedicated in improving the asset integrity and efficiency of our terminals across the country, particularly our main one which is Tabangao Import Facility,” he said.

He was referring to the facility in Tabangao, Batangas, which was inaugurated in June 2021 with a storage capacity of up to 263 million liters in a bid to meet fuel demand in Metro Manila, Southern Luzon, and Northern Visayas.

Abilo said about 50% of the capex will be spent on enhancing the company’s mobility footprint in the country, as it seeks to increase its mobility stations by 20 to 25 in 2024 from the 1,179 as of end-2023.

In terms of the medium-range capable terminals, Shell president and chief executive officer Lorelei Osial said the company is on track to have its fourth delivered 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 advance energy transition at base with society,” she said.

“We will capture new opportunities and carry out our sustainability initiatives purposefully and profitability as we play a key role in a balanced energy transition,” she added.

In the same briefing, Shell vice president for mobility Michael Ramolete said the firm is looking to sustain its growth against its competitors through winning back customers.

“We will obviously try to grow at par or even more versus industry. Obviously, our focus is to be able to win back customers and win more 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,” he added.

Shell reported a net income of P1.182 billion in 2023, down from P4.075 billion in 2022 as net sales dropped to P253.316 billion from P291.482 billion, while costs and expenses slipped to P248.277 billion from P282.802 billion.—RF, GMA Integrated News