SEAOIL opens six new stations
SEAOIL, the country's largest independent oil company, is well on its way to fulfilling its expansion plans in 2008 with the opening of six new stations in various parts of the country.
In just the first two months of the year, SEAOIL opened stations in Payatas (Quezon City), Magalang (Pampanga), Sta. Cruz (Laguna), Lacson St. (Bacolod), Kabangkalan (Negros) and Bagumbayan (Sultan Kudarat).
"We're exploring other expansion opportunities in the Panay Islands and other strategic areas in Visayas and Mindanao were we currently capture around 3% of the total industry market share" said Francis Glenn Yu, President of SEAOIL.
To provide a low capital option for interested franchisees, the company developed the SEAOIL Express Station with modular station design, the first of its kind in the industry. The initial capitalization for its stations already includes the franchisee fee, which is also kept low at P350,000. Furthermore, it provides support programs such as credit terms, branding initiatives, and margin support programs.
To complement its network of retail statgions, the company has invested in several depot facilities strategically located in key areas nationwide. Its depot in Mandaluyong City has a total storage capacity of 16.2 million liters, the largest storage facility among the independent players in Metro Manila.
SEAOIL also has access to a terminal in Mabini, Batangas that currently has a capacity of 10 million liters. It likewise maintains a storage facility with a capacity of 2.2 million liters in Bacolod to serve its network in the Visayas region. In Mindanao, its storage facility in Dipolog has a capacity of 1.3 million liters. To complement its network of retail stations, the company has invested in several depot facilities strategically located in key areas nationwide. Its depot in Mandaluyong City has a total storage capacity of 16.2 million liters, the largest storage facility among the independent players in Metro Manila.
The company has a fleet of vessels capable of bulk distribution within the archipelago. This setup provides it with access to a wider and more extensive market than its competitors and gives it greater reach, flexibility and control.
SEAOIL gained the distinction of becoming the first independent fuel company, other than the Big 3 players Petron, Shell and Caltex, to operate following the deregulation of the country's downstream oil industry in 1997.
SEAOIL intends to put up 126 stations in 2008, 43 of which are already in various stages of construction. Last year, the firm pumped up its net income five-fold to an estimated P150 Million from the 2006 earnings of P36.8 Million as the rapid expansion of its retail gas station network boosted sales.
"This substantial growth in earnings could support at least the initial stages of SEAOIL's expansion activities until it is able to raise the required capital from other sources," Yu pointed out.