Shell earnings slide by 31% in 6 months
Pilipinas Shell Petroleum Corp. (PSPC) ended the first half with a net income of P3.7 billion, down 31 percent yearon-year.
While the first half profit is lower than last year’s P5.4 billion, it is already at 70 percent of its full year 2018 earnings, PSPC said.
PSPC president and CEO Cesar Romero said the company performed well in the second quarter.
“We are pleased with the business delivery in the second quarter. The strong volume growth across all our business segments demonstrates the strength of our brand and our commitment to deliver world-class fuels and excellent service to our consumers,” he said.
The company saw an 11 percent jump in total volumes in the second quarter as marketing businesses posted volume growth across all segments.
Retail volumes grew, while maintaining its high premium fuel penetration against the backdrop of higher excise taxes.
As of the end of June, PSPC opened 16 new retail sites. It is on track to meet its target of opening a total of 50 to 70 sites by the end of the year. Currently, the company’s retail network consists of 1,092 sites in key locations.
Meanwhile, the company’s non-fuel retail segment continues to enjoy double-digit growth year-on-year.
It now has 137 Select stores, 63 deli2go stores, and 348 Shell Helix Oil Change+ (SHOC+) and Helix Service Centres (HSC) nationwide.
The company remains on track to deliver a total of 15 to 20 Select and deli2go stores, and 30 to 50 SHOC+ and HSC.
The commercial segment also posted strong volume growth in the second quarter as
the lubricants, bitumen, and the aviation segment continue to grow.
PSPC was also able to capitalize on the surge in demand from the power sector as a result of warmer weather and maintenance shutdowns of several coal-fired plants.
To further enhance its supply chain, PSPC has implemented cost and operational efficiency projects in its refinery to improve its competitiveness.
In the second quarter, the company said the refinery started its engineering works for the hydrogen optimization project which aims to improve the refinery’s crude intake flexibility and product slate.
Romero said the company continues to leverage on its flexible and efficient supply chain to support the country’s demand for highquality fuels and services.
“We will continue to invest in profitable ventures to deliver competitive returns to our shareholders. The country’s macro-economic fundamentals remain strong and the government is serious about curbing smuggling and enhancing the ease of doing business. We look forward to playing our part,” he said.