Philippines: Seaoil Franchise Expansion Announced

 Seaoil Philippines is embarking on an aggressive P3-billion expansion program over the next three years, in a bid to cement its position as the “leading independent fuel retailer in the Philippines.” Seaoil president and CEO Glenn Yu said the plan is to double the oil company’s station network to 400 by end-2014, and increase the number of depots in strategic locations nationwide.

 According to Glenn Yu, a regular attendee to the PetrolWorld Business Forums,  the first P1 billion will be spent in 2012 to consolidate and expand the existing fuel retail network. It is planned to increase the network by 60 new fuel service stations during 2012.

Of this number, 30 service stations will be put up in Luzon; 15 will be located in the Visayas; while the remaining 15 will be constructed in Mindanao, Yu disclosed. Yu stated that Seaoil expects to allocate another P1 billion in 2013 and 2014 to complete the expansion program. “We expect to expand through franchising. We have reorganized the company to focus more on retail expansions. We believe there are underserved areas. There are more islands in the Philippines than gas stations so there are still many areas where we can expand into,” Yu explained.

Seaoil has a network of 200 service stations, with the most recent site opened last week in Plaridel, Mandaue City. According to Yu, the company’s 200th station marked a milestone for new entrants like Seaoil in a deregulated downstream oil industry.

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