Unioil allots P1 B for 3-year network expansion in Luzon

MANILA, Philippines - Unioil Petroleum Philippines Inc. has programmed to spend as much as P1 billion in the next three years to expand its footprint in Luzon.

The oil firm is banking on increasing demand for fuel particularly diesel given robust economic growth, company executives said.

“We are building more stations here in Metro Manila...We are looking at (putting up) 10 to 12 stations per year in quality sites,” Unioil general manager Luisito Medina-Cue Jr. said in a briefing.

He said capital expenditures for every service station amount to P25-30 million.

Unioil president Kenneth Pundanera said under the expansion program in the next three years, the company will spend P250-360 million per year to put up new gas sations.

Cue said Unioil will be a force in Metro Manila in the next two to three years given new branches.

To date, the downstream oil firm has 30 service stations in Metro Manila, Cavite, Pampanga and Laguna.

It is scheduled to open four new branches in Makati and Quezon City until next month.

Retail sales are expected to grow 15 percent this year due to higher demand and new service stations.

“In the case of Unioil, we are improving because we keep on building stations,” Pundanera said.

For next year, Unioil’s projection is a faster uptick in retail sales compared with 15 percent this year, Pundanera said.

“Of course the outlook for next year for us is still positive because the Philippines is growing. A good Philippine economy should be equivalent to a good demand,” Pundanera said.

Retail sales account for 30 percent of Unioil’s business, with the remaining taken up by revenues from other products like lubricants, asphalts and fuel wholesaling.

“Retail is the one with the most potential to grow because we just have a few stations,” Pundanera said.

Formally launched unioil yesterday the EuroDiesel IV, the cleanest and most advanced diesel in the country.

“EuroDiesel IV guarantees maximum sulfur content of 50 parts per million versus Euro II diesel’s 500 parts per million,” Unioil said.

With the new product, Cue said the company expects to generate 60-65 percent of its revenues from diesel as early as next year, from 55 percent to date.

The Department of Environment and Natural Resources requires all fuel companies to sell Euro IV compliant diesel by 2016.

Unioil said EuroDiesel IV will provide cleaner emissions, better fuel efficiency, faster cold-start performance and quieter engine.

EuroDiesel IV will be sourced in Singapore.

“Our commitment is to serve the demand. We can advance or replenish the stock at the Bataan import terminal depending on the demand,” Cue said.