By Victor V. Saulon, Sub-Editor
PTT PHILIPPINES Corp. is setting aside P500 million for its capital expenditure budget for next year, saying it remains bullish on both its oil and non-oil businesses in the country.
Next year’s budget forms part of the Thai company’s P5-billion allocation for its Philippine unit for the next five years, company officials said in a briefing on Wednesday. They did not disclose the comparative capex last year.
Sukanya Seriyothin, PTT Philippines president and chief executive officer, said next year’s spending would go largely into the opening of more than 30 gasoline stations and about 12 Cafe Amazon stores “in various parts of the country, particularly in Luzon.”
“We remain confident of the business climate in the Philippines, that’s why from 20 stations that we targeted this 2017, which we actually exceeded, we are targeting more than 30 stations next year,” she said.
Under the company’s five-year target, PTT Philippines General Manager Danilo Alabado said it is projecting a compounded annual growth rate of around 17%.
“Roughly our revenue projection this year is around P20-P22 billion. Right now we are more or less flat because we changed some dynamics in our business approach,” he said. “Next year [revenues] should be around P28 billion.”
PTT Philippines has a total of 120 gasoline stations in the Philippines, of which 15 are in Metro Manila.
The company is also expanding the PTT-owned coffee chain Cafe Amazon, which will end the year with six stores.
The first Cafe Amazon opened in the last quarter of 2016 at PTT Philippines’ largest service station — the two-hectare complex along the Subic-Clark-Tarlac Expressway (SCTEx).
“By end of this year, we will have a total of six stores that are fully operational,” said Thitiroj Rergsumran, PTT Philippines marketing director.
This year, the company opened cafes at PTT Dasmariñas, Cavite and SM North EDSA.
“This month, we are opening our stores at PTT EDSA Veterans in Quezon City, another one at PTT Pulilan (Bulacan) and PTT Lubao (Pampanga),” he said.
PTT offers a partnership deal through dealerships for its gasoline station, while opening its Cafe Amazon to franchising with an initial investment of P4-P6 million.