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Topline buys P180M worth of stations, depot

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July 8, 2025
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Topline buys P180M worth of stations, depot
PHILIPPINE STAR/EHDA M. DAGOOC

By Sheldeen Joy Talavera, Reporter

CEBU-BASED fuel retailer Top Line Business Development Corp. (Topline) is acquiring P180 million worth of assets as part of its planned P925-million investment to accelerate expansion in the Visayas.

“As part of our flexible strategy for expansion, we explored opportunistic acquisitions of retail fuel stations to fast-track the growth of our Light Fuels brand. This acquisition supports our broader long-term growth objectives by enabling faster market entry and operational scalability,” Eugene Erik C. Lim, chairman, president, and chief executive officer of Topline, said in a statement on Tuesday.

To accelerate the rollout of its expansion plans, Topline’s subsidiary Light Fuels Corp. entered into a purchase agreement with Total Oil & Gas Resources, Inc. (TOGRI) and Ballston Metro Corp. (BMC) for P120 million and P60 mil-lion, respectively.

The assets involved include 38 retail fuel stations located across Cebu, Leyte, Siquijor, and Negros Oriental. The acquisition also includes a two-million-liter depot facility, 15 fuel tanker trucks, machinery and equipment, and in-tangible assets such as a customer loyalty program and leasehold rights.

“The acquisition will enable [Topline] to accelerate its market entry and rapidly scale its operations across key regions,” the company said. “This is aligned with the company’s long-term growth objectives of expanding its presence in the retail fuel sector and increasing brand visibility.”

The acquisition is being financed through a combination of bank financing and internally generated funds, the company said.

“Our systems are in place for prudent inventory management and efficient fuel deliveries to our new stations as we grow our footprint,” said Brigitte Carmel C. Lim, senior vice-president and chief operating officer of Topline.

With the additional stations, the company expects to distribute at least 35.6 million liters in fuel sales volume annually. Last year, the company sold 72.45 million liters of liquid fuels.

“With continued consumption and economic growth in the Visayas, this strategic acquisition strengthens our retail fuel revenue stream while complementing our robust commercial fuel trade revenues,” Mr. Lim said.

While commercial fuel trading remains Topline’s core business, the retail fuel segment is emerging as a growth pillar as it is poised to consolidate fuel station chains in the Central and Eastern Visayas regions, according to Peter Louise D.C. Garnace, equity research analyst at Unicapital Securities.

“With this horizontal expansion, Topline is well-positioned to widen its geographical footprint and tap underserved markets where competition is less saturated,” he told BusinessWorld.

Mr. Garnace said the expanded retail fuel station network “will reinforce its ability to supply fuel at competitive prices, strengthen customer loyalty, and drive market share growth.”

Franco M. Fernandez, equity research analyst at DragonFi Securities, Inc., said investors are revaluing Topline, with its shares closing at P0.85 apiece, up 49.12%.

“From a market structure standpoint, this expansion enhances their credibility and brand awareness, challenging legacy players like Petron and Shell. Competitors may start to feel pressure from Topline, potentially prompting defensive reinvestment in retail infrastructure or lower prices. Consumers in the region stand to benefit the most in the near term,” Mr. Fernandez said.

He added that Topline’s expansion comes at a crucial time amid geopolitical tensions that impact oil prices.

“Therefore, strengthening regional supply chains and logistics through localized depots and a larger tanker fleet helps mitigate potential supply disruptions and cushions price volatility.”

Jayniel Carl S. Manuel, sales and trading department assistant manager at Seedbox Securities, Inc., said the entry of Topline into more locations introduces “fresh competition, which could pressure incumbents to improve pricing, service levels, or efficiency.”

“Over time, this reshapes the fuel retail landscape by creating a more competitive and consumer-oriented market environment,” he said. “For end users, the benefits are clear: improved access to fuel stations, better service due to heightened competition, and potentially more stable pricing from increased supply chain efficiency.”

Topline was the first company to conduct an initial public offering (IPO) on the Philippine Stock Exchange this year. The company allocated P400 million out of its P733-million IPO proceeds for the expansion of its service station network.

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