Pilipinas Shell income up 11% to P5.6 B
PILIPINAS SHELL Petroleum Corp. posted an 11% year-on-year jump in net income in 2019 on the back of its marketing activities and savings from refinery costs.
The oil company told the Philippine Stock Exchange on Monday that it recorded P5.6 billion in net income, as it spent P6 billion in expanding its retail network, supporting refinery growth projects, and bolstering supply and distribution capabilities.
According to Pilipinas Shell Vice-President for Retail Randolph T. Valle, the company’s retail volume grew by 1.2% with premium fuel penetration at 27% despite high excise taxes, lifted by marketing activities, along with its loyalty programs and network expansion.
The company added 53 new fuel retail stations, operating a total of 1,126 sites in 2019.
Meanwhile, its non-fuel business saw earnings rise by 15%.
Its overall commercial fuel volume expanded by 9%, driven by its bitumen business, which supports the government’s Build, Build, Build program. The oil firm’s Bitumen Production Facility has more than doubled its operating profits in the year as it ramped up its footprint nationwide and exported to five countries.
“The marked volume growth across our business segments last year was not by chance; it is the result of consistent strategy and clear-cut focus on our objectives,” Pilipinas Shell President and Chief Executive Officer Cesar G. Romero said.
Meanwhile, its refinery saved almost P700 million last year in structural costs to counter the depressed regional refining margins. In December, it turned to low sulfur fuel oil, which yields higher margins compared to high sulfur fuel oil.—