Flying V allots P1-B for 2011 capex

MANILA, Philippines - Flying V, one of the country’s leading independent oil firms, has earmarked P1 billion for its capital expenditures next year, the company’s top official said.

Flying V chairman Ramon Villavicencio said the capex fund will be sourced from equity investments and internally-generated funds.

Out of its P1-billion budget, 65 percent will be allotted for the expansion of its network of gasoline stations.

Villavicencio said their aggressive capex allocation is hinged on their optimism on the country’s economic prospects.

For 2010, he said they expect Flying V’s gross revenue to reach about P15 billion.

With 235 stations all over the archipelago, Villavicencio said 66 more stations will be added to the company’s network by the second quarter of 2011.

In keeping up with its stance as the major independent oil player with the largest number of retail stations, it is envisioned that by end of 2011, about 387 stations will rise all over the country with the next construction concentrated more in the areas of Visayas and Mindanao as well as northeast of Luzon.

To support its widened distribution network, he said the company will strengthen its logistics infrastructure, increase the capacity of its five existing depots and construct an additional three depots in key areas.

For its expansion program, Villavicencio said Flying V will generate employment opportunities for Filipinos located in the countryside.

“Flying V has to start now as it takes 10-15 years to generate one percent required to supply the world’s energy requirements. Flying V hopes to maintain its strong advocacy in leading the Philippines towards more energy independence,” he said.

At present, Flying V has five storage facilities located in key strategic areas — Poro Point, La Union in the North; Sta. Ana and Mandaluyong in Metro Manila; Cebu and Davao. Four more depots are expected to be completed next year.

Flying V launched recently the ‘Green Drive’ program where motorists can avail of ‘green’ shirts and a special collectible die-cast toy tanker, proceeds of which will — all go to indigent recipients.

Flying V has also been very active in its value formation activities under the Academe Foundation.