Pilipinas Shell Petroleum Corp. said Friday it budgeted P3 billion to P4 billion this year to expand and upgrade its retail network.
“Pilipinas Shell plans to spend approximately P3 billion to P4 billion for capital investments which will be mainly funded by cash provided by operating activities,” the company said in a report to the stock exchange.
Pilipinas Shell is one of the leading fuel distributors in the country, with a network of over 1,100 Shell-branded stations nationwide.
“The company will continue to focus on expanding and upgrading its network of mobility stations and improve existing supply and distribution sites,” it said.
It said the ongoing conflict between Ukraine and Russia resulted in several uncertainties on businesses and institutions worldwide, but does not expect any significant impact from these developments after the end of the 2021 reporting period.
“The company has long-term and secured access to petroleum products through the Shell network. The company will continue to closely monitor the situation,” Pilipinas Shell said.
Pilipinas Shell posted a turnaround in net earnings of P3.9 billion at the end of 2021, after suffering a net loss of P16.2 billion in 2020.
The company said its approach in marketing premium products, customer-centric integrated fuel, and non-fuel products and sustained network growth resulted in financial recovery last year.
Core earnings amounted to P2.3 billion, up from the previous fiscal year’s P300 million. Revenues also went up to P177.157 million from P156.952 billion in 2020.
Operational cash flow remained at P1.8 billion as the company sustained proactive management of costs, working capital and cash inflows.
Pilipinas Shell’s fuel marketing volumes started increasing as government lifted COVID-19 restrictions and ramped up its campaign to get more people fully vaccinated, but were still 7-percent below 2020 levels.
“Our strategy of powering progress for the Philippines is working, despite the challenges brought by an unprecedented global health crisis and the lockdowns it triggered,” said Pilipinas Shell president and chief executive Lorelie Quiambao Osial.
“It has enabled us to remain agile and resilient throughout the challenging period, placing us in a good position for today’s recovery. We remain firm in our commitment to serve the public who are rediscovering the joys of mobility,” she said.
Pilipinas Shell increased its lubricant business by 30 percent and bitumen sales by 12 percent from the previous year.
Quiambao-Osial expressed hope that “marketing volumes continue to improve as more people get fully vaccinated, feel safer, and get back on the road.”