Pilipinas Shell Petroleum Corp. has increased its capital expenditure budget to around P6 billion this year from P4.1 billion, mainly to support the expansion of its retail network business as well as for its manufacturing and supply businesses.
The company added 50 new gas stations last year, boosting its total network to 1,084 at the end of 2018. It is set to open 50 to 70 more outlets in strategic locations this year.
Pilipinas Shell said its increased capital spending this year reflects the group’s commitment to power the local economy.
It ended 2018 with a P5.1 billion net income, down 50.8 percent year on year amid the challenges of higher inflation and a weaker peso.
The manufacturing segment recorded highest reliability in five years, but contribution to the integrated business was affected by the sudden drop in crude prices in the fourth quarter and depressed regional refining margins.
Meanwhile, Shell’s non-fuel retailing business continued to deliver double-digit growth. It opened 75 new Shell Helix oil change+ and Helix service centers, 33 new Select stores and 17 new deli2go stores.
“We celebrated our 105th year in the country and are committed to be the Philippines’ partner in nation-building for many more decades to come. Strong corporate governance, consistent strategy, and commitment to our core values give us the confidence to compete in a challenging business environment,” said Cesar Romero, president and CEO of Pilipinas Shell