PILIPINAS Shell Petroleum Corp. reported a net income of P3.12 billion in the second quarter, more than twice the P1.3 billion it recorded in the same period last year as the company posted a double-digit sales growth.
In its financial report submitted to the stock exchange, the oil refiner and distributor recorded net sales of P54.57 billion, up 34.4% from the figure in the same quarter last year. Gross profit hit P7.32 billion, higher by 59.5% from a year ago.
“The strong performance is attributed to the higher earnings of its marketing businesses and inventory holding gains from its manufacturing and supply chain segments,” the company said in a statement.
In the first half, Pilipinas Shell recorded a 29.8% increase in net income to P5.44 billion from P4.19 billion previously. Net sales reached P104.11 billion, up 26.6%, while gross profit was at P14.39 billion, up 21.4%.
Pilipinas Shell President and Chief Executive Officer Cesar G. Romero cited the challenges from the lower refining margin environment in the first half of the year.
“Our world-class marketing businesses backed by our efficient supply chain and supported by technical and trading capabilities from the Shell Group have allowed us to remain competitive in this challenging business environment,” he was quoted as saying.
Despite the increase in retail pump prices due to rising global oil prices and higher excise taxes, the company said it sustained the high penetration of its V-Power fuel product.
This year, the company opened 16 retail stations and is on track to build a total of 50-70 new sites by the end of 2018. It has 1,054 retail sites to date across the country.
For the non-fuel business, it opened 19 new Select stores, 10 deli2go stores and 26 lube bays in the first half “to capture the growth in convenience retailing.”
In the commercial segment, the company said it had posted strong volume growth in aviation, lubricants, and bitumen.
“Aligned with its commitment, the only bitumen production facility in the country is now operational and ready to support the government’s infrastructure projects,” it said.
Pilipinas Shell said its North Mindanao import facility remains to be an “important enabler” in the delivery of supply cost savings and reliability. Its Tabangao refinery has also completed its planned one-month de-coke pit stop in the second quarter.
“Optimization projects are also underway to better respond to the softer regional refining margin environment,” it said.
Cash from operations in the first half was placed at P7.1 billion while return on average capital employed increased to 30% from 22%.
On Monday, shares in the company rose 0.27% to close at P56.65 each. — Victor V. Saulon