Listed Pilipinas Shell Petroleum Corp. posted a P1 billion net profit in the first quarter, a reversal of the P5.5 billion loss it incurred in the same period last year, even as sales volume remained low.
Pilipinas Shell in a statement attributed its P1 billion net income “to its new supply chain strategy, higher premium penetration across all segments and continued cash conservation measures.”
A regulatory filing showed Pilipinas Shell’s first quarter net sales fell by 17.5% to P39.92 billion year on year, as sales volume declined by 31% to 997.8 million liters.
The company said lubricants and bitumen sales are up by 12% and 27%, respectively, “supported by new customer wins and increase in economic activities in some industries.”
However, Pilipinas Shell noted volume delivery remained below pre-pandemic levels, as the number of coronavirus disease 2019 (COVID-19) infections continue to rise and stricter lockdowns are imposed.
“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. The difficult decision to transform our refinery into world-class import facility allowed us to avoid the significant losses we incurred during the first half of 2020,” Pilipinas Shell President and Chief Executive Officer Cesar G. Romero was quoted as saying.
The company permanently shuttered its 110,000 barrels-per-day refinery in Tabangao, Batangas as the slump in regional refining margins worsened due to the pandemic.
“We have yet to see fuel demand to go back to pre-pandemic levels. With our refocused and reset strategy, we are well-positioned to meet the country’s energy requirement as the economy recovers from the pandemic,” Mr. Romero said.
Shares of Pilipinas Shell in the local bourse decreased by 6% or P1.3 to close at P20.45 apiece on Friday. — Angelica Y. Yang
