Isla LPG Corp., the joint venture between Itochu of Japan and Citadel Holdings Inc. of the Delgado Group, has pegged its full-year target income conservatively into a single-digit growth after seeing a slow improvement in its first-quarter overall performance.
On the sidelines of the Industry Emergency Response 2013 forum organized by the Philippine Institute Petroleum, Ramon del Rosario, Isla LPG chief operating officer, told reporters that the company always see growth in its profit but has not determined yet the exact figure.
“So far the business is doing well. As we see opulence of the people, you see the economy improving, if there are more people going out to eat, there’s more cooking,” he said.
“We’ve targeted more or less a single-digit growth rate against last year,” del Rosario added.
He further said that the company posted a slower growth in its corporate performance in the first quarter of this year.
“It [the year]started very slow. In terms of volume, we’re okay but in terms of generating the sales that we wanted, it’s not coming as we’ve planned. Normally, it’s like that because we are in the lean season because [demand for]gases stop, there’s no school,” he specified.
Del Rosario, on the other hand, mentioned that the company targets to finish within the year the building its 10th refilling station that will be located in Canlubang, Laguna, adding there are plans to add more refilling stations in the next few years.
For its Canlubang refilling station, the company is looking to spend around P50 million.
“We will do some projections but as I’ve said, it depends on how the market evolves. For example, if we see that the prospects for business are growing, then we would consider putting up some sites,” del Rosario said.
“There are several areas where we’re considering [new refilling station],” he said, adding that the company has a presence in Luzon, Visayas and Mindanao. The market share of Luzon in LPG Isla’s business is about 50 percent but according to del Rosario, the company is also planning to expand its market in the Visayas and Mindanao.
“We see the whole Philippines growing. It’s just a matter of which grows faster and what particular challenge we see in a particular area,” he added.
Madelaine B. Miraflor