SPC sees 2026 capex at lower end of guidance

SHELL PILIPINAS Corp. (SPC) said it expects 2026 capital expenditures (capex) to settle near the lower end of its previously announced P2-billion-to-P3-billion guidance as the company manages spending amid continued volatility in the energy market.

At the company’s annual stockholders’ meeting on Tuesday, SPC Vice-President for Finance Reynaldo P. Abilo said more than half of this year’s capex budget has been allocated for trading and supply activities, including upgrades to the company’s import terminal and infrastructure network nationwide.

The remaining budget will fund efforts to “refresh our mobility footprint across the country.”

“Most likely we will be ending at the lower end of the range for 2026 as we try to optimize our spending given the volatility and uncertainty in the energy market,” Mr. Abilo said.

Last year, SPC said around P2 billion to P3 billion per year had been earmarked for capital expenditures in 2025 and 2026.

The company has yet to release its financial results for the first quarter of 2026.

For this year, SPC President and Chief Executive Officer Lorelie Q. Osial said the company is focused on strengthening its business portfolio by expanding non-fuel income streams and prioritizing areas that could generate more predictable returns.

“We fully recognize the volatility in many things, whether in oil prices, whether in foreign exchange, whether in global supply and demand, on the geopolitical tensions that are happening. And this will continue to shape our operating market,” she said.

As tensions in the Middle East continue to affect global energy markets and fuel price volatility, SPC said it remains focused on ensuring supply security.

“We have been actively engaging with various branches in government as we navigate through the current volatility that all of us are going through,” Ms. Osial said.

SPC, the country’s second-largest player in the downstream oil industry, operates more than 1,100 service stations nationwide. — Sheldeen Joy Talavera