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Thursday, May 23, 2024

Pilipinas Shell swung to P2.2-billion profit in first half

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Pilipinas Shell Petroleum Corp. posted a P2.2-billion net income in the first half, rebounding from a P6.74-billion net loss in the same period last year, on the recovery of businesses as the government rolled out initiatives to reopen the economy.

“The company reported a net income of P2.2 billion as a result of strong marketing delivery supported by inventory holding gains net of the offsetting adjustments from the implementation of the Corporate Recovery and Tax Incentives for Enterprises Act,” Pilipinas Shell said in a disclosure to the stock exchange Friday.

Shell also posted a net income of P1.199 billion in the second quarter, a reversal of the P1.195-billion net loss it incurred in the same period last year.

“We’re seeing a significant rebound from our P6.7-billion loss in the same period last year. It validates our bold decision to transform the way we do business amidst uncertain conditions resulting from the COVID-19 pandemic,” Pilipinas Shell president and chief executive Cesar Romero said in a statement.

Sales climbed to P82.232 billion in the first six months from P74 billion a year earlier on higher pump prices and strong marketing delivery. Sales in the second quarter also went up to P42.312 billion from P25.657 billion.

Cost of sales declined to P70.756 billion in the first six months from P75.920 billion in the same period last year. The company said in the second quarter, cost of sales improved to P36.819 billion from P24.521 billion a year ago.

The Mean of Platts Singapore product prices went up to $80 per barrel as of end-June from $53 a barrel as of end-December 2020.

Pilipinas Shell attributed the strong showing in the first six months not only to supply chain strategy but also to its strong marketing performance while ensuring the financial strength and resilience of its business via a strong balance sheet and prudent cost and capex management.

Pilipinas Shell inaugurated the Shell Import Facility Tabangao on June 30, marking the transformation of its refinery into a world-class import terminal to meet fuel demand in Metro Manila, Southern Luzon, and Northern Visayas.

“This SHIFT means stronger supply reliability, greater operational efficiency, and improved overall logistics performance,” said Romero.

Romero said that while the pandemic continued to pose challenges to the economic recovery, it was not expected to preclude growth.

“We intend to continue to be the preferred energy partner for the industries that we serve, and the country itself, to thrive in a better normal,” he said.

Pilipinas Shell sustained support for road construction projects, effectively increasing sales of bitumen products by 45 percent in the first half from 16,000 tons a year ago. Shell Instapave, with its innovative quick-application technology, was used for road repairs in North Luzon and residential builds in the Visayas.

Shell Bitufreshair was also used for infrastructure projects all over the country, enhancing the air quality for motorists and passengers.

The company said its retail stations remained open to facilitate the transportation of goods and critical services despite the imposition of tighter restrictions on mobility due to the increasing number of locally-transmitted cases of the Delta variant.

“All our businesses will continue to meet our customers’ essential needs, following government health and safety protocols,” Romero said.

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