MANILA, (PNA) — Eastern Petroleum is eyeing a P300 million net income for 2014, higher than the P60-100 million goal for this year to be boosted by its latest venture – the fire-proof composite liquified petroleum gas (LPG) cylinder.
Eastern Petroleum Group Chairman Fernando L. Martinez said the European-made LPG tank dubbed EC Gas for Eastern Composite is expected to have a bigger share of the company’s earnings compared to the fuels business.
“It will be a major contributor starting next year,” he told reporters after the formal launch of the LPG tank.
The LPG is priced P4,500 initially but Martinez said the price includes the tank, the gas as well as the installation of new pipes to a household’s stove.
Refill price is at par with the other companies at around P750, he said.
The new cylinder will be available from the about 40 stations of Eastern Petroleum, Unioil and the franchisees starting September 14, 2013.
The LPG will be provided by Netherlands-based LiquiGaz while the cylinder will be provided by Norway-based Hexagon Ragasco As.
Compared to the regular steel LPG tank that needs to be reconfigured every three years, Martinez said the composite tank needs to undergo similar process after 10 years because it has higher International Organization for Standardization (ISO) certification.
During the launching ceremony, EC Gas Division Manager Jose Carlos Martinez said they now have 30 franchisors in Metro Manila, Cavite, Camanava.
He said t they target to have about 100 outlets by the end of this year and 300 retail outlets by the end of next year.
The company eyes to expansion in Cebu, Davao and General Santos City in the near future, he added.