Petron earmarks P45 billion for 3-year capex

MANILA, Philippines — Petron Corp. is preparing to invest as much as P45 billion over the next three years to further beef up its network and operations in the Philippines and Malaysia.

Petron vice president and deputy chief finance officer Albert Sarte said the company would  spend between P10 billion and  P15 billion for  capital expenditures annually over the next three years.

Sarte said the Philippines would get the lion’s share of the capex at around 70 percent, while Malaysia would receive the remaining 30 percent.

In terms of projects, he said the bulk of the investment or around P4 billion annually would be allocated for the service station expansion in both countries.

“We see that as a cornerstone in our growth strategy to be able to sell more and reach more customers in the future,” Sarte said during a virtual investor day event of the Philippine Stock Exchange yesterday.

“We’re planning to add more stations, but probably at a more cautious tone, given that you know, we are actually living in very volatile times so we will assess the situation,” he said.

Sarte said Petron is likewise looking at improving its logistical capability and expanding its storage facilities to make it more cost efficient.

He said between P2 billion and P3 billion would be allotted for these projects every year.

“We also have a pipeline project and also CME  (coco-methyl ester) project that is meant to increase our operational efficiency and lower cost,” Sarte said.

“Then finally, I guess the balance of the capex would be for regular maintenance activities,” he said.

Petron intends to construct and operate a coco-methyl ester plant.

In line with this, the company’s board of directors recently approved the amendment of the company’s primary purpose under its articles of incorporation to include biofuels.

The proposed amendment will allow the company to construct and operate a coco-methyl ester plant and secure relevant permits.

Petron has a combined refining capacity of 268,000 barrels-per-day.  It produces a full range of world-class fuels and petrochemicals, and operates about 40 terminals in the region.  It has around 2,800 service stations where it retails world-class gasoline and diesel.

For 2022, the company is also looking to expand its adopted reforestation sites in Bawing, General Santos City and in Tagoloan, Cagayan de Oro as part of its sustained ESG initiatives.