PILIPINAS Shell Petroleum Corp. has secured a P9-billion loan from two local banks that it will use to reduce its exposure to short-term market volatilities, the listed company announced on Wednesday.
In its regulatory filing, Pilipinas Shell said the loan has a five-year term and is evenly split between Bank of the Philippines Islands (BPI) and Metropolitan Bank & Trust Co.
Pilipinas Shell said that with the loan, “it benefits from the low interest rate for its cash requirements.” Its execution of another loan with BPI also renews an existing five-year loan with the bank maturing on March 8.
Pilipinas Shell is planning to grow its local presence by adding 40 to 60 service stations per year until 2025. As of mid-2022, the company has 1,100 service stations in the Philippines.
Aside from its target expansion, Pilipinas Shell also intends to develop its fifth medium-range import terminal this year.
The company has set its 2021-2025 strategy, which includes sustainability goals such as the promotion of clean and renewable energy.
In January, Pilipinas Shell signed a tripartite memorandum of agreement with the Department of Energy and Shell Energy Philippines, Inc. to conduct a study on electric vehicle charging stations powered by renewables.
Pilipinas Shell is primarily engaged in the refining, importation, and marketing of petroleum products.
At the local bourse on Wednesday, shares in the company closed 0.12% lower to P16.98 apiece. — Ashley Erika O. Jose