Anchoring it on a ‘refreshed strategy’, listed firm Shell Pilipinas Corporation will be tightening its belt with leaner capital expenditures (capex) rollout of just P2.0 billion to P3.0 billion this year, roughly half from last year’s P5.0 to P6.0 billion of programmed capital spending.

During the company’s annual stockholders meeting, Shell Pilipinas Chief Finance Officer Reynaldo P. Abilo forthrightly apprised shareholders that “for this year, we’re planning to spend capex between P2.0 billion to P3.0 billion - and about 50% of that will be dedicated in improving the asset integrity and efficiency of our terminals across the country – particularly the main one which is our Tabangao import facility.”

He added that the other 50% will be funneled into investments geared toward “enhancing the mobility footprint that we have in the country.”

With the additional capital outlay, he emphasized that 20-25 mobility stations will be added into the company’s overall retail portfolio; hence, reinforcing its strong network of 1,179 mobility stations that had all been on commercial stream by end-2023.

Shell Pilipinas President and CEO Lorelie Quiambao-Osial similarly indicated that the company’s buildup of two additional medium range-capable import terminals in Visayas and Mindanao has been advancing as they are targeted for commercial operations between this year and 2026.

“We are on track when it comes to our planned medium-range capable terminal. Both fourth and fifth are on the way -- number four is on track to be delivered this year and number 5 to be delivered in 2026,” she stressed.

Additionally, Shell Vice President for Mobility Michael Ramolete conveyed that on the retail segment of the company’s downstream oil business, “we will obviously try to grow at par or even more versus industry.”

He said “our focus is to be able to win back customers and win more through stronger product claims and integrated fuels and NFR (non-fuel retail) promotions,” adding that such strategy will enable the company to gain traction on reinforcing sales volumes.

On a stockholder’s question relating to Shell’s ‘subdued’ share value, Abilo acknowledged that “the prevailing share price does not reflect the true value of our company,” although he qualified that somehow, they are “not aware of any facts that would indicate possible stock manipulation.”

Yet he assured shareholders that in instances where cases of stock maneuver could be established, “if we’ve become aware of the facts that would point to a possible stock manipulation, your company would make the necessary representation with the relevant authorities to investigate the matter.”

Abilo highlighted “ensuring that our stock is properly valued is a key agenda or a key concern of the management as well as of the board. This is why as a company, we want to make sure that we’re able to recover our strong dividend earnings and cash position, so that we’d be able to pay dividends moving forward.”

Further, he noted that the company had “increased the touch points of our investor relations team so that we would be able to increase interest in our Shell stock, which unfortunately, had been thinly traded in the past several years.”