SHELL REBOUNDS, POSTS P 1-B NET INCOME

Pilipinas Shell Petroleum Corp. chalked up a net income of P1 billion in the first quarter of 2021, rebounding from a net loss of P5.5 billion in the same period of 2020, thanks partly to its new supply chain strategy.

“We are now seeing the positive results of the tough decisions we made that ensured our financial resiliency and competitiveness brought about by the COVID-19 pandemic,” company president and chief executive Cesar Romero said in a statement.

Romero was alluding to the decision to cease refinery operaLeading tions but make additional investments to transform the Tabangao complex in Batangas into a “world-class” import facility.

He said that by world-class, he meant that Tabangao as a storage facility was retooled to attain flexibility to accommodate spikes in demand and with the readiness to support growth in the coming years.

As such, Tabangao is also made capable of receiving medium-range vessels and has large-capacity fuel tanks with fast transfer rates—ensuring efficient marine discharge and loading operations.

It is also equipped to be a fully connected terminal system with integration of the truck gan29 try facility “that enables operational excellence” in every step of the fuel transport process.

Romero said the decision to transform Tabangao allowed Pilipinas Shell to avoid the significant losses incurred during the first half of 2020.

“We have yet to see fuel demand to go back to prepandemic levels,” he said. “With our refocused and reset strategy, we are well-positioned to meet the country’s energy requirement as the economy recovers from the pandemic.”

With enhanced community quarantine restored in the latter part of the first quarter, Pilipinas Shell’s volume delivery remained below pre-COVID levels.