Shell Pilipinas sets two-year capex at P4B-P6B
Shell Pilipinas Corp. is planning to spend up to P6 billion this year through 2026 to further build up its market presence.
This comes especially as the group suffered a big drop in earnings in the first quarter of 2025.
In a briefing, Rey Abilo, vice president of finance, said the group would maintain its “disciplined approach” in capital spending.
“We will be investing a total capex (capital expenditures) between P2 to P3 billion pesos per year in the next two years, and that will be equally split between our mobility business and our supply chain,” he told reporters.
The funds, he noted, would be used to “build, upgrade, and refresh our mobility stations.”
Currently, the company has more than 1,000 stations servicing motorists nationwide.
According to vice president for mobility Michael Ramolete, the group is targeting to launch 15 to 20 new sites.
Last year, the firm discontinued the operations of 53 sites that failed to book expected returns.
“[P]art of our cost and capital reduction was to hydrate our mobility network to prevent further losses and generate hosting,” Ramolete 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.
A portion of the investment would also go for its Tabangao Refinery, Shell Pilipinas’ biggest import terminal.
The capital would be internally funded, Abilo said.
Net income plunges in Q1
Shell Pilipinas reported that its first-quarter profit dropped by 47 percent to P740 million from P1.4 billion a year earlier amid market volatility and heightened competition.
Cash flow from operations stood at P3.4 billion during the period. However, net cash flow was only P190 million due to more expensive working capital requirements.
