Seaoil banks on franchising for growth

Seaoil Philippines Inc. said it is ready to face the challenges brought by the global financial crisis and has even planned to further beef up its franchising business. According to Chief Financial Officer Mark Yu, the company is planning to offer 40 service stations for franchise in 2009, costing between Php3-4 million (US$63,030-84,040). The company has almost 150 service stations in the Philippines, of which 90% are owned and operated by franchisors, while Seaoil manages the remaining 10%. Seaoil said its 2008 sales grew 60% due to price rollbacks and government packages. The company will use funds it had initially earmarked for an initial public offering (IPO) to expand its downstream oil operations, focusing on retail. It is also thinking of putting up an ethanol processing plant, which will have a capacity of 100,000 liters a day. (January 28, 2009)