Pilipinas Shell posts ₧4.4B net income
PILIPINAS Shell Petroleum Corp. posted a net loss of P3.3 billion in the third quarter of the year, but was still able to record a total net income of P4.4 billion from January to September this year.
Pilipinas Shell reported last Monday that despite challenges posed by rising inflation and depreciation of the Philippine peso against the US dollar, the oil firm sustained its strong core performance with a P4.406 billion net income at endseptember this year from P3.365 billion in the same period a year ago.
“We are committed to continue to power progress for the Philippines,” said Pilipinas Shell President and CEO Lorelie Quiambao Osial. “Our strategy, together with our drive and agility, enables us to remain resilient through challenges and sets us to thrive, as we continue to deliver high-quality products and services for the growing and evolving needs of our customers.”
Osial also expressed confidence the firm will finish the year “with strong volume delivery with the progressive opening of the economy.”
Pilipinas Shell attributed its gains to strong marketing performance as year-to-date marketing volume delivery increased by percent versus the previous year. The company also ended with a positive cash flow from operations, excluding movement in working capital, of P10.8 billion, up from the previous year’s P10.1 billion.
During the period, net sales increased by 71 percent due to higher pump prices driven by the increase in global oil prices and higher marketing volumes.
Earnings before interest, taxes, depreciation and amortization (Ebitda) increased by 8.5 percent mainly due to impact of post-tax inventory gains during the period.
However, core earnings declined to P1.8 billion brought about by the impact of foreign exchange loss due to the depreciation of the peso.
Meanwhile, Phoenix Petroleum Philippines Inc. saw its Ebitda fall by 32 percent at end-september year-on-year to P1.8 billion, mainly on account of lower domestic fuel volume in the third quarter.
“Domestic fuel volume was sharply lower in the third quarter, with the overseas trading business, likewise, taking a breather after consecutive quarters of unprecedented growth,” the company reported.
“As a result, year-to-date Ebitda was 32-percent lower year-on-year at P1.8 billion. Recovery in fuels was further set back by lack of scale driven by persistent challenges in liquidity and uncertainties in global markets and economic growth.”
Still, Phoenix Petroleum is banking on a more sustainable supply chain and logistics model to provide it with “better results” moving forward.
On a per unit Ebitda basis, it saw a 21-percent growth year-to-date as it continues to exercise prudence in operational expenditure (Opex) and capital expenditure (Capex) and enhance productivity and efficiency across businesses.
For instance, the LPG business grew 11 percent quarter-on-quarter. The company said this remains a bright spot in its portfolio. During the third quarter, domestic LPG volume grew nine percent the prior year and a further eight percent from the previous quarter.
Overseas LPG, likewise, recovered strongly from a weak second quarter this year with volume rising 16 percent quarter-on-quarter and growing three percent year-to-date. Both standalone businesses continue to benefit from robust underlying demand in the Philippine and Vietnam markets, adequately supported by working capital, it said.
The oil firm has opened over 700 stations nationwide to date.
Phoenix Petroleum said in a statement it “remains focused on strengthening its operations despite a tumultuous year of volatility in global oil markets, recessionary concerns amidst record high inflation, peso depreciation and monetary tightening and muted demand.”
Phoenix Petroleum President Henry Albert R. Fadullon expressed gratitude “to the men and women of Phoenix who remain motivated and to our partners in the business who have steadfastly supported us.”