Seaoil to invest P45M for 6 new retail stations
abs-cbnnews.com | 03/06/2008 3:36 AM
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By DONNABELLE L. GATDULA
Seaoil Philippines Inc., the country’s largest independent oil company, is investing about P45 million to put up six new retail gas stations in various parts of the country.
Glenn Yu, Seaoil president, said the construction of the additional fuel refilling stations is part of the company’s aggressive expansion program for 2008.
For the first two months of the year, Yu said the company has opened stations in Payatas(Quezon City), Magalang (Pampanga), Sta. Cruz (Laguna), Lacson St.(Bacolod), Kabangkalan (Negros) and Bagumbayan (Sultan Kudarat).
Yu said they are planning to put up more retail stations within the next few months.
"We’re exploring other expansion opportunities in the Panay Islands and other strategic areas in Visayas and Mindanao where we currently account for around three percent of total industry market share," Yu said.
To provide a low capital option for interested franchisees, the company has developed the Seaoil Express Station with a modular station design, the first of its kind in the industry. The initial capitalization for these stations already includes the franchisee fee, which is also kept low at P350,000.
Yu said the company also provides credit terms, branding initiatives and margin support programs for franchisees.
According to Yu, Seaoil also invested in the construction of several depot facilities strategically located in key areas nationwide to complement the expansion of its retail network.
At present, he said Seaoil has a depot in Mandaluyong City which has a total storage capacity of 16.2 million liters, the largest storage facility among the independent players in Metro Manila.
Seaoil, he said, also has access to a terminal in Mabini, Batangas that currently has a capacity of 10 million liters. It likewise maintains a storage facility with a capacity of 2.2 million liters in Bacolod to serve its network in the Visayas region. In Mindanao, its storage facility in Dipolog has a capacity of 1.3 million liters.
He said the company also maintains a fleet of vessels capable of bulk distribution within the archipelago.
"This setup provides it with access to a wider and more extensive market than its competitors and gives it greater reach, flexibility and control," he said.
Seaoil gained the distinction of becoming the first independent fuel company, other than the big players Petron, Shell and Caltex, to operate following the deregulation of the country’s downstream oil industry in 1997.
Yu said the oil company intends to put up 126 stations in 2008, 43 of which are already in various stages of construction.
Last year, the firm pumped up its net income five-fold to an estimated P150 million from the 2006 earnings of P36.8 million as the rapid expansion of its retail gas station network boosted sales.
"This substantial growth in earnings could support at least the initial stages of Seaoil’s expansion activities until it is able to raise the required capital from other sources," Yu said.
