Thai firm local subsidiary PTT Philippines rolls out its five-year investment plan commanding capital outlay of P5.0 billion to bulk up on its retail network to 300 stations.
PTT President Sukanya Seriyothin said “you can expect to see more PTT stations as we have allocated around P5.0 billion for the construction of more stations to reach our target of 300 stations by year 2021.”
The company will already have 112 stations for its retail portfolio until the end of the year; and to hit its investment target, it will need to work on the 188 stations more in the coming years.
The Thai firm is targeting to beef up its retail network beyond Luzon – that 20 percent of its planned 20 stations next year will likely be in Visayas. Mindanao is similarly part of the goal for new ventures, but company officials qualified this is still under serious study.
“Our expansion in the Philippines, particularly our retail, is in full swing… we now have 105 service stations in Luzon and in Cebu in the Visayas. This month, seven more stations are scheduled to open, and therefore, our total service stations operating will be 112 by end of this year,” the PTT chief executive added.
The investment proposition will be a combination of mega or large-scale and compact stations. For the second one, the pilot venture is already firmed up for location in Urdaneta City in Pangasinan.
A good bit of the company’s retail and branding reinforcement would be the integration of “Café Amazon” being a vital element of non-fuel service to patrons of their gasoline stations.
“Part of the budget will also be allocated for new Café Amazon and we are targeting 60 branches by that time,” Seriyothin said.
The “Café Amazon” is a key feature of major PTT stations in Thailand as well as in the company’s operations in Laos, Myanmar, Cambodia and Japan – and it is a retail business component that the Philippine subsidiary would want to re-introduce here. PTT has already integrated such at its softly opened station at the northbound of the Subic-Clark-Tarlac Expressway.
Given the boom-and-bust cycle of the oil industry, Seriyothin noted that the non-fuel component of their business would definitely help boost profitability.
“Our estimated sales volume by end of 2016 is expected to reach more than 1.0 billion liters, 6.0-percent higher than planned,” she said.
Seriyothin further explained that “the increase in volume is primarily due to higher sales in aviation and retail segments.”
The oil firm emphasized it is projecting an average annual growth rate of 11-percent in the next five years “with positive growth in all segments.”
Tags: investment plan, manila bulletin, mb.com.ph, Philippine news, PTT Philippines, PTT Philippines rolls out P5-B 5-yr investment plan, Thai firm
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