PTT Philippines, a unit of PTT Public Co. Ltd. of Thailand, plans to invest P3 billion in the next five years to expand the company’s network here.
The capital expenditure program includes investments in retail stations, oil depots and terminals in Luzon and Visayas.
“In the next five years, PTT appropriated P3 billion for expansion plan, for laying down on infra,” general manager Danilo Alabado told reporters.
PTT Philippines currently has 94 stations and plans to put up a total of 300 by 2020.
“Right now we have the trading areas in Luzon and Cebu. In order for us to achieve our goal to be one of the top five oil companies in the next five years, we will expand into other trading areas, other islands,” Alabado said.
He said the company needed the support of a stronger infrastructure network for its expansion program.
“We need depot, fuel terminal that could come in in Visayas and Mindanao which we have been looking at,” the official said.
PTT president and chief executive Sukanya Seriyothin cited a strong growth projected growth in Luzon for the company’s planned expansion.
“Visayas and Mindanao we still have to further expand. We’re still moving forward in Luzon, but aside from that, we move further in Visayas, Mindanao,” Sukanya said.
Alabado, meanwhile, said the company performed “fairly well” in 2015 with sales volume likely to increase 5 percent to 6 percent.
“We are confident we are going to meet our target,” Alabado said, adding revenues may reach P1.1 billion this year.
“We are looking at 5 to 6 percent growth next year until 2017 because we are going to lay down our infra support for expansion for 2018 going into 2020, we are looking at growth of 60 percent compared to what we had in 2015,” he said.
PTT Thailand is Thailand’s biggest oil player and ranked number 81 under Fortune 500’s List of world’s largest companies.
The company, controlled by the Thai government, is engaged in downstream and upstream petroleum, natural gas, coal, and other related businesses.
PTT Public Co. Ltd. of Thailand, the parent of PTT Philippines, earlier said it planned to increase the revenue share of its overseas retail oil business to 20 percent in the next five years.
PTT Thailand vice president for international marketing Wisarn Chawalitanon noted that the share of the overseas retail oil business to the company’s revenues was still small.
PTT Thailand, which owns around 1,200 to 1,300 retail stations in Thailand, is banking on its overseas presence in the Philippines and other countries to help propel the company’s growth.
Wisarn said the Philippines remained PTT Thailand’s priority market.
“The Philippines is the biggest operation that we have in other Asean countries. Our revenue in the Philippines is more than 20 billion baht [P26 billion] compared with the other countries which have around 5 billion baht [P6.5 billion]. That’s why we pay attention to the Philippines,” the official said.