SEAOIL Philippines Inc. is confident it would surpass its record-high income and revenues last year by offering its most innovative franchising package that allows aspiring entrepreneurs to operate a service station with less than P1 million in capital.
In 2015 the independent oil firm incurred a net income of P1.05 billion and P31.5 billion in revenues.
“Our net income grew roughly five times. It was from roughly P200 million to P1 billion. The revenue was P31.5 billion. The year before was roughly P28 billion,” said Mark Yu, Seaoil president for retail business.
The company also achieved a 59-percent volume growth in 2015 by capitalizing on areas where it has logistical advantage, by streamlining business processes and by applying results-oriented programs to improve sales performance.
This year Yu said the oil firm is targeting a 25-percent growth in revenues through continuous retail expansion and improving the performance of existing stations. Net income for the year, he added, would probably grow to P1.3 billion.
“I think we have a good business model. It has been an exciting journey for Seaoil. Over the years, we have continuously strived to provide the best franchise packages, improve our operational efficiencies and strengthen relationships with our stakeholders,” Yu said.
The new operator package was recently rolled out. Yu said the operators would be earning according to the volume they generate, while Seaoil shoulders the operational costs, excluding manpower. Seaoil targets to sign in 60 station operators this year under this new package.
“With less than P1 million, you can already operate a station wherein we will take care of your utilities and other expenses. This new package really targets those retirees who have a lot of network. All they really got to worry about is selling,” Yu said. “We try to come up with packages that are really cost efficient and with really low-capital requirement that can allow you to make a significant return.”
Aside from the target 60 station operators this year, Seaoil plans to put up 40 more service stations nationwide this year from the current 400 stations.
The company also announced that the first Seaoil megastation along the Subic-Clark-Tarlac Expressway (SCTEx) will be fully operational by the last quarter of 2016.
“The Seaoil SCTEx megastation will be the company’s banner station that will greatly improve our brand presence. It is also an opportunity to serve more motorists, especially those traveling from Northern provinces and cities like Baguio,” Yu said.
Seaoil is the largest independent fuel player, and the fourth-leading fuel company in the Philippines in terms of market share, according to the 2015 report from the Department of Energy (DOE).
Throughout its history, Seaoil has proven its commitment to excellence through the introduction of innovative products, services and programs. It was the first to shift to unleaded gasoline, as well as to introduce low-sulfur diesel to minimize harmful exhaust emissions from public utility vehicles. Seaoil also spearheaded the shift to alternative fuels, like bioethanol gasoline and biodiesel.