Seaoil to put up 13 stations in Cebu

SUNDAY, 18 SEPTEMBER 2011 19:35 JOY FLORES-ABLANIDA / CORRESPONDENT

AFTER opening its 200th station on Friday, in Plaridel, Mandaue City, Cebu, Seaoil Philippines Inc. President and CEO Glenn Yu said they are targeting a total of 13 stations here by year-end to boost the company’s retail network all over the country.

Seaoil said they also opened two other stations in Cebu earlier this year: one in Consolacion and another in Talisay. Its first station in the province started servicing the public in December 2009.

Yu said out of 200 stations, Seaoil maintains 50 percent of its retail network in Luzon, 20 percent in the Visayas and 30 percent in Mindanao.

He added that Seaoil plans to put up 60 new stations in 2012 as outlined in the three-year Seaoil expansion program.

“Seaoil will be adding 30 more stations next year in the Visayas and Mindanao to further enhance the reach of our products and services nationwide,” said Yu.

Seaoil is recognized as one of the companies offering the most viable franchise investments and was awarded by Entrepreneur magazine with the “Best in Franchising Support” at the 2009 Franchise Awards. This year, the same award-giving body gave the company a special citation on Consumer Advocacy.

Through its franchise program, Seaoil said a dealer can develop a station from the ground up or opt to franchise an existing station with proven revenue streams.

Yu expressed the belief that the entry of Seaoil helped bring down fuel prices in the province.

“There were some concerns about prices in Cebu. By the mere presence of Seaoil, we were able to bring in what we were able to do in Luzon. This is part of our advocacy,” said Yu, further noting that fuel prices in Cebu are now on a par with Manila.

In line with the company’s thrust of fueling a better future, Seaoil also endeavors in programs that espouse youth development as part of its corporate social responsibility.

Early this year, Seaoil also began its partnership with the National Basketball Training Center (NBTC), the Philippines’ only grassroots youth basketball training program.

The NBTC is an accredited program of the Samahang Basketbol ng Pilipinas and spans 21 cities around the country. Supported by Seaoil this year, the NBTC has consistently produced top players for the National Youth Team.

The company also works hand in hand with the Ateneo de Manila University School of Government in conducting a leadership training program for local government officials in Luzon, the Visayas and Mindanao.

Yu said the company dreams of becoming “the Jollibee of the oil industry in the Philippines.”

The Plaridel station houses the only Seaoil Academy in the entire Visayas. It is the firm’s training facility for their franchisees.

Yu disclosed Seaoil’s three-year expansion program through franchising.

By 2012, the oil firm is eyeing 60 more gas stations nationwide: 30 in Luzon and 15 each in the Visayas and Mindanao.

Of the 15 stations in Visayas, Yu said five to six will be in Cebu.

Seaoil has shifted its focus to retail expansion with 90 percent of its 200 stations being franchise-operated.

Yu pointed out that around 60 percent to 65 percent of their stations are company-owned.

He disclosed the cost of putting up a station costs about P10 million. Investors, though, only have to pay Seaoil a franchise fee of P500,000 but that they should have at least P2 million as working capital.

Yu said an investor need not have a site for the station in order to apply for a franchise as they could assist them in find ing a location.

The company was founded in 1978 and had its first oil depot in 1980. The company opened its first-ever gas station in 1997.

Yu said Seaoil opened its 50th station in 2001; the 100th station in 2005; and its 200th station on Friday.

With its expansion program, the independent oil firm is looking at 400 stations in the next three years. --With Paul Isla