TOP Line Business Development Corp. on Tuesday announced the signing of a sublease agreement for a 30-million-liter fuel depot in Cebu.
The company said this was part of a broader plan to develop an energy complex in Central Visayas, aimed at enhancing energy security in the region and expanding its logistics abilities.
In a disclosure, Top Line said the sublease with Cebu’s Lu Do and LuYm Group, which is engaged in storage facility rentals, was signed through subsidiary Topline Logistics and Development Corp.
Top Line’s current fuel depot, to be later developed into the Top Line Energy Complex, will serve as its fuel logistics and storage hub.
Top Line said the first phase of the project would focus on the refurbishment and optimization of the depot facility, with completion targeted for the fourth quarter of this year.
The company currently has a storage capacity of 10 million liters and the deal with Ludo and LuYm is expected to increase this “by about 300 percent.”
Top Line said the agreement would significantly strengthen its logistics capabilities, operational efficiency, and supply chain reliability as it grows its network of Light Fuels service stations and commercial customers.
“We are entering our next phase of growth and the Top Line Energy Complex is a cornerstone for our continued expansion,” Chairman, President and CEO Eugene Erik Lim said.
“Through this agreement, we are strengthening our ability and capacity to expand to serve the growing energy needs of our customers while supporting broader efforts to improve regional energy security,” he added.
For the Lu Do and LuYm Group, Chairman Douglas LuYm said: “We are pleased to support Top Line Business Development Corp. in this important project, which brings together our existing infrastructure and their growing fuel distribution capabilities.”
“We believe this partnership has strong potential to create long-term value and contribute to the development of a more reliable fuel supply chain in Cebu and the wider Visayas region,” he added.
Top Line also said that there were ongoing discussions for subsequent development phases to further expand capacity, subject to market demand.
Registered with the Securities and Exchange Commission in July 2013, Top Line began its commercial fuel trading operations in 2017.
Based on bourse data, Top Line’s commercial fuel trading segment caters to customers with requirements of above 4,000 liters per order in transportation, construction, shipping and mining, among others.
Its commercial fuel trading operations are said to be backed by a fleet of some 22 tanker trucks.
The company is said to be currently focused on its vertically integrated liquid fuels business, targeting the underserved Central Visayas region.
Top Line has two subsidiaries — Light Fuels Corp. and Topline Logistics and Development Corp.
The company’s shares on Tuesday closed unchanged at P1.41 per share.
