CEBU CITY—Encouraged by Cebu City’s vibrant economic prospects and its own rapid expansion, Topline Business Development Corp., led by the Lim siblings, is set to enhance its footprint in the downstream oil industry. The company is doubling down on its bet on Cebu’s petroleum retail market, potentially a prelude to an even more aggressive growth strategy in the coming years.
Since shifting from leasing and real estate to the fuel sector in 2017, Topline has achieved an impressive 53 percent compounded annual growth rate in diesel deliveries. This year, the company is investing heavily into retailing petroleum products through its subsidiary, Light Fuels, after an initial foray early last year.
Topline’s robust growth caught the attention of the Philippine Stock Exchange, which recently invited the company to its roadshow in Cebu. The event aimed to attract investors and encourage companies to consider the stock market as a potential source of capital.
Light Fuels launched its first gas station in Mandaue City in February last year. The station has been selling approximately 100,000 liters of gasoline and diesel monthly. This year, Topline will open nine additional stations, including two focused on motorcycles and smaller vehicles, at an investment of P210 million.
Topline chairman, president, and chief executive officer Erik Lim told reporters Friday night that last year’s sales volume reached 50 million liters and that he anticipates further growth as Cebu’s economic expansion continues.
Brigette Lim, the company’s chief operating officer and Erik’s eldest sister, highlighted that fuel demand in Central Visayas is growing faster than the region’s economic expansion, with a growth rate of 8 to 9 percent, according to the Department of Energy.
Central Visayas, encompassing Bohol, Cebu, Negros Oriental, and Siquijor, was the fastest-growing region last year, with a 7.3 percent growth rate, as reported by the Philippine Statistics Authority.
Constance Marie Lim, Topline’s chief finance officer, noted that the majority of monthly sales—ranging from 4 million to 5 million liters—are directed towards manufacturing, logistics, and shipping sectors. The retail segment currently represents only 3 percent of total sales, but is expected to rise with the addition of more Light Fuels stations.
The current expansion is financed through a mix of 65 percent debt and 35 percent operational funds, allowing Topline flexibility for further growth. Last year, the company’s gross revenue surged 33 percent to P2.8 billion, with continued revenue growth into the first quarter of this year.
“The company’s bullish growth is supported by resilient and strong fuel demand in Cebu Province and Metro Cebu where we operate,” said Erik Lim.
The positive outlook has led the PSE to invite Topline executives to its roadshow, aiming to showcase the benefits of going public and encourage other firms to explore stock market listings.
“We would love to go in that direction (undertake an initial public offering) but we’re still preparing,” Erik Lim stated.
Meanwhile, Brigette Lim revealed that, in addition to expanding its depot capacity at the Arctura tank terminal in Mandaue, Topline is considering entering the liquefied petroleum gas market, driven by the province’s growing tourism industry. Currently, Topline offers only cooking gas from Petron Corp.
Looking ahead, Erik Lim said the company will step up efforts to further grow the business. “In 2024, we are intensifying our efforts to integrate our operations vertically by expanding in retail and commercial fuel trading, while reinforcing our depot operations to meet the growing market demand in Cebu,” he said.
