Top Line earmarks up to P440 million for depot expansion

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 company 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 company plans to allot a bigger capital expenditure budget this year 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 year after its stock market debut, Top Line is returning to the equity market through a perpetual preferred share offer that seeks to raise as much as P1.5 billion.

Nearly half of the proceeds from the fundraising activity will be used to expand the company’s fuel depot in Cebu, which is estimated to cost P500 million to P1 billion.

Top Line operates a fuel depot within a terminal in Mandaue City that serves as a storage hub to help maintain fuel reserves and streamline supply operations.

The company plans to increase the facility’s storage capacity to 40 million liters from 10 million liters.

Despite uncertainties brought about by the Iran war and resulting volatility in crude prices, Top Line Chairman, President and Chief Executive Officer Eugene Erik C. Lim said the company would push ahead with the capital-raising activity to boost fuel supply capacity.

“More than ever right now, it’s actually quite important for us to even push further for enough supply in the market,” he said. “So that’s why it’s quite timely.”

Oil-importing economies such as the Philippines have faced heightened risks from disruptions in the Strait of Hormuz, a key global oil shipping route that handles a significant portion of global crude exports.

Aside from expanding storage capacity, Top Line is also accelerating its retail network expansion and aims to operate 50 fuel stations by year-end.

The company has 18 operational stations and is rebranding at least 30 stations acquired last year.

“We’re looking at making sure that we’re going to operate all of the 50 [stations] this year,” 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 year 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 year for market penetration,” Top Line Senior Vice-President and Chief Operating Officer Brigitte Carmel C. Lim said.

“We moved quickly when opportunities became available, and that accelerated our station rollout and revenue contribution,” she added.

Shares of the company fell a centavo to P1.39 each on the Philippine Stock Exchange.