Independent oil player Seaoil Philippines Inc. has taken in Caltex Australia Petroleum Pty Ltd. as long-term strategic partner for its expansion program.
In a statement, Seaoil said it has signed a definitive agreement that forges a strategic partnership with Caltex Australia, which will acquire a 20 percent interest in the independent oil firm.
“We have long sought for a strategic partner to complement our capabilities and competitive advantage, and we are optimistic that Caltex Australia, whose values we share and whose operations is like ours in complexity, can help accelerate our growth,” Seaoil chairman and founder Francis Yu said.
The new strategic partnership will see Caltex Australia support Seaoil’s current growth strategy, which aims to double its retail network and terminal storage capacity over the next five years.
Seaoil has over 400 stations nationwide located as far north as Aparri, all the way to the south in Sarangani.
As part of the formation of the strategic partnership, Caltex Australia will supply fuel to Seaoil via Ampol, its fuel sourcing and shipping business in Singapore.
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“This is an exciting growth opportunity for Caltex Australia. The fact that Seaoil has chosen to enter this partnership with us is a testament to the skills and capabilities we have been building over many years in our company. It also demonstrates the value that can be created from our position as an independent fuel supplier in the Asia-Pacific region. We look forward to being part of Seaoil’s growth over the coming years,” Caltex Australia CEO Julian Segal said.
Caltex Australia is a 100 percent publicly-owned company listed on the Australian Stock Exchange. It does not share any common ownership with the local Caltex brand, which is owned by Chevron Philippines Inc.
In terms of size, Caltex Australia has a market capitalization of $6.5-7 billion, well above the combined market capitalization of Pilipinas Shell Petroleum Corp. and Petron Corp. by more than 70 percent.
Caltex Australia supplies one-third of Australia’s transport fuel needs under the Caltex brand and has an extensive terminal and retail network including 76 depots, 12 terminals operated by Caltex, five major and bunker pipelines, nine airport jet fuel supply sites, and over 1,900 retail sites (including resellers and Australia’s largest retailer fuel network).
In 2016, it sold over 16 billion liters of transport fuels and supply in excess of 70,000 commercial customers. It also has operations in New Zealand under the Gull brand and Singapore under the Ampol brand.
In the Philippines, Seaoil has a six percent total market share and is a pioneer in alternative fuels like bioethanol gasoline and biodiesel.
The company supplies approximately 1.5 billion liters annually through its vast network, its base fuels imported from select refineries in Japan, South Korea and Singapore and enhanced with STP additives. Seaoil conducts at least three daily checks on their fuels to check for consistency in purity and has experienced a 47 percent sales volume growth in the last three years.
“This partnership will also mean exciting times for our employees, our franchisees, distributors and customers as we leverage our partner’s scale and expertise to provide high quality, affordable and accessible fuels and lubricants to the fast growing Philippine market.” Yu said.