PILIPINAS Shell Petroleum Corp. reported on Tuesday a first-quarter net income of P2.32 billion, lower by 20% compared with the P2.89 billion recorded in the same period last year after a slide in revenues.
In a regulatory filing, Pilipinas Shell said net sales during the period rose 19% to P49.54 billion, as prices of fuel products rose due to the increase in average global oil prices.
Cost of sales grew at a faster clip of 23.5% to P42.46 billion, as a result of higher purchase costs.
The company in a statement said it hit an “industry-leading” 27% return on capital. It also recorded growth in operational cash flow by 23% on a trailing 12-month basis.
“Pilipinas Shell’s performance in the first quarter demonstrates the strength of our brand. Amidst the challenges brought by higher excise taxes, customers continue to patronize our products,” said Cesar G. Romero, Pilipinas Shell president and chief executive officer, in a statement.
“We even saw an increase in V-Power uptake of 2% vs Q1 2017. We remain pleased with our marketing businesses which continue to demonstrate strong underlying performance both financially, and operationally,” he added.
Pilipinas Shell also said operational cash flows during the period increased 23% to P3.5 billion year on year, “mainly driven by total sales volume growth of 4%, higher premium fuel penetration and better working capital management.”
While softer regional refining margins during the quarter contributed to the roughly 20% decrease in overall earnings, Pilipinas Shell said its marketing business increased profitability by 13%.
“In retail, sales volumes were sustained while increasing premium fuel sales, closing the quarter with 27% V-Power penetration,” it said.
Pilipinas Shell opened four new stations in the first three months of the year, ending the quarter with 1,047 retail sites.
On Tuesday, shares in the company slipped 1.39% to close at P53.05 each. — V.V. Saulon