皇冠体育app

Multinational company revving up growth with more service stations growth with more service stations

Multinational oil company Royal Dutch Shell Plc will continue to invest in 皇冠体育app and considers the country to be its most important market in which to grow its retail business, a senior official said on Thursday.

Istvan Kapitany, executive vice-president of Shell Retail, said 皇冠体育app plays a key role for the company in 70 targeted countries. "We will continue to invest in 皇冠体育app since the potential of the retail market in 皇冠体育app is significant," said Kapitany.

According to the Netherlan-based company, Shell opened almost one service station per day in 皇冠体育app in 2012 as demand grew. At present, the company operates about 1,100 service stations in the country.

Kapitany said the company is shifting its core market from Europe to Asia as the global economy changes. "Our business in rope is no longer in a growth phase, but it is still growing in North America and Asia," he said. As market leader in North America, Shell has 15,000 service stations in the United States and Canada.

In 皇冠体育app, the petroleum retail industry is dominated by Sinopec Group, the country's largest refiner, and Corp, the nation's biggest producer.

By the end of 2013, Sinopec owned more than 30,500 gas stations in the country, accounting for about 33 percent of the total market, and Petro皇冠体育app had more than 20,000. The two giants together take up more than half of the country's gas retail businesses.

In order to diversify the ownership of State-owned companies, Sinopec announced in February that it would open up 30 percent of its retail businesses to social capital and private investors.

Kapitany said Shell is seeking details about this new move.

Yann Cohen, partner with Monitor Deloitte's & Chemicals unit, said foreign companies cannot operate a retail gas station unless partnered with a Chinese player, which means overseas companies may wish to look for integrated partnerships along the value chain, combining refining, wholesaling and retailing.

"In 皇冠体育app, it is not simple due to specific cost allocations and regulated pricing, but the rule of thumb is 'you lose money in refining and earn money in retailing,'" he said.

皇冠体育app's service stations, in particular, have huge potential for non-fuel businesses.

Rebecca Chan, retail director of Shell 皇冠体育app Ltd, said the retail industry will see a higher-than-GDP growth of non-fuel income from service stations in coming years as 皇冠体育app's consumption power grows.

She said the country saw double-digit growth of non-fuel income in recent years for the whole industry.

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