By Sheldeen Joy Talavera, Reporter
TOP LINE Business Development Corp. is proceeding with its fuel depot expansion in Cebu despite the US-Israel war on Iran that has rattled global oil markets, with the corporate setting aside as much as P440 million for the project.
Constance Marie C. Lim, first vice-president and chief finance officer at Top Line, said the corporate plans to allot an even bigger capital expenditure budget this yr than the P1.19 billion it spent in 2025, mainly to support the expansion of its fuel storage facility.
“So we’re quite strategic in our expansion,” Ms. Lim told a news briefing on Monday.
A yr after its stock market debut, Top Line is returning to the equity market through a perpetual preferred share offer that seeks to boost as much as P1.5 billion.
Nearly half of the proceeds from the fundraising activity will probably be used to expand the corporate’s fuel depot in Cebu, which is estimated to cost P500 million to P1 billion.
Top Line operates a fuel depot inside a terminal in Mandaue City that serves as a storage hub to assist maintain fuel reserves and streamline supply operations.
The corporate plans to extend the ability’s storage capability to 40 million liters from 10 million liters.
Despite uncertainties led to by the Iran war and resulting volatility in crude prices, Top Line Chairman, President and Chief Executive Officer Eugene Erik C. Lim said the corporate would push ahead with the capital-raising activity to spice up fuel supply capability.
“Greater than ever immediately, it’s actually quite necessary for us to even push further for enough supply available in the market,” he said. “In order that’s why it’s quite timely.”
Oil-importing economies resembling the Philippines have faced heightened risks from disruptions within the Strait of Hormuz, a key global oil shipping route that handles a significant slice of world crude exports.
Other than expanding storage capability, Top Line can be accelerating its retail network expansion and goals to operate 50 fuel stations by year-end.
The corporate has 18 operational stations and is rebranding a minimum of 30 stations acquired last yr.
“We’re taking a look at ensuring that we’re going to operate the entire 50 [stations] this yr,” Mr. Lim said.
For the January-to-March period, Top Line posted a 64.3% increase in net income to P62.27 million from a yr earlier. Consolidated revenue rose 75.4% to P1.76 billion.
“Our retail performance validates the strategic use of the IPO (initial public offering) proceeds we raised last yr for market penetration,” Top Line Senior Vice-President and Chief Operating Officer Brigitte Carmel C. Lim said.
“We hurried when opportunities became available, and that accelerated our station rollout and revenue contribution,” she added.
Shares of the corporate fell a centavo to P1.39 each on the Philippine Stock Exchange.