PTT sets aggressive Philippine expansion plan

CONCEPCION, Tarlac, Philippines — PTT Philippines Corp., the local unit of Thailand’s largest petroleum company, has set an aggressive expansion plan for its business portfolio this year as it maintains its commitment in the country, company officials said.

Among those that will be expanded are the jet fuel business, retail stations, coffee shop chain and eventually, the convenience store business.

“Our commitment is we want to invest here,” PTT Public Co. Ltd. executive vice president for international marketing Wisarn Chawalitanon said during the grand opening of the oil firm’s largest service station in the Philippines along SCTEX.

He said the Philippine business remains the biggest in its regional network, which include Cambodia, Myanmar, Indonesia, Malaysia and Brunei.

The oil company is eyeing more jet fuel requirements of Cebu Pacific outside the Philippines after it renewed its supply contract this year worth P7 billion, PTT Philippines Trading Corp. general manager Danilo Alabado said.

He said the contract renewal is 10 percent bigger in volume and in cost – with the supply contract amounting to P6 billion last year.

“We’re also going to compete in airports outside the country where Cebu Pacific has presence. These are mostly in Asia, plus two in Australia,” Alabado said.

Currently, the Cebu Pacific contract corners about 60 percent of PTT Philippines’ aviation business. The oil firm serves the airline’s total jet fuel requirements especially for their flights using the Ninoy Aquino International Airport, the Diosdado Macapagal Airport (Clark), and the Visayas routes.

PTT Philippines president and CEO Sukanya Seriyothin said Cebu Pacific has been the oil company’s partner for more than 15 years already.

For the retail network expansion, PTT Philippines will open around 30 new service stations this year, PTT Philippines marketing director Thitiroj Rergsumran said.

The number is bigger than what was opened in the past three years – 15 in 2015, 17 in 2016 and 23 in 2017.

“These are mainly in Luzon first and and Southern Visayas near Cebu or in Cebu,” Rergsumran said.

He said more Café Amazon stores – around 10 shops – would be opened this year as well, compared with one and five stores in 2016 and 2017, respectively.

PTT Philippines will also bring its Jiffy convenience store to the Philippines.

“We are testing the market for Jiffy. We put up only one and we want to test it first. If we sustain the market, then we plan for expansion,” Chawalitanon said.

PTT Philippines has put up its first Jiffy convenience store in its Belfast, Fairview gas station.

This year, the oil firm has set a budget of over P500 million to expand both its oil and non-oil businesses in the country.

This is part of its P5-billion capital expenditure plan in the next five years to meet its revenue growth target of 17 percent annually, company officials said.

PTT has been in the Philippines for more 20 years and is also into the fuel retail business with 122 service stations to date spread across Luzon and in Central Visayas. Its wholesale business also serves the maritime industry.

Recently, it diversified into non-oil business with the introduction of its coffee shop chain, Café Amazon, which originated from Thailand.