PILIPINAS SHELL Petroleum Corp. sustained its recovery with a net income of P1.2 billion in the second quarter on the back of higher sales and the changes in its supply chain strategy, it said on Friday.

During the April-to-June period, the listed oil company reversed its P1.195-billion net loss a year ago. It also kept its momentum after the first quarter’s P1.02-billion net income.

In its stock exchange disclosure, Pilipinas Shell reported a 64.9% rise in net sales during the second quarter to P42.31 billion. Its costs of sales also climbed 50.2% to P36.82 billion.

For the first half, the company posted a P2.22-billion net income, swinging from a net loss of P6.74 billion a year ago. It attributed the reversal to a shift in its supply chain strategy.

Cesar G. Romero, Pilipinas Shell president and chief executive officer, described the company’s first-semester performance as a “significant rebound” after the previous year’s loss.

“It validates our bold decision to transform the way we do business amidst uncertain conditions resulting from the Covid-19 pandemic,” Mr. Romero said in the disclosure.

On June 30, the company launched Shell Import Facility Tabangao, or SHIFT, which changed its refinery in Batangas into a world-class import terminal that will address fuel demand in Metro Manila, Southern Luzon, and Northern Visayas.

For the six-month period, the company’s net sales rose 11.1% to P82.23 billion compared with P74.03 billion a year ago.

In contrast, Pilipinas Shell’s cost of sales fell 6.8% to P70.76 billion from P75.92 billion the previous year.

For the period, the company posted a 45% increase in the sales of bitumen products amid the sustained support for road construction projects.

“Shell Instapave, with its innovative quick-application technology, was used for road repairs in North Luzon and residential builds in Visayas. Shell Bitufreshair was used for infrastructure projects all over the country, enhancing the air quality for motorists and passengers,” the company said.

Pilipinas Shell said its marketing volume for the second quarter rose 18%. However, its marketing volume delivery for the first half was flat compared to previous years as a result of travel restrictions caused by the pandemic.

“The [second quarter] increase stems from innovative marketing initiatives that focus on the consumer’s fuel and non-fuel needs and use digital means to improve customer engagement and perception,” the company said.

“Strong volume and profit performance were also seen in the lubricants business, with premium products growth and deeper consumer penetration nationwide seen as key levers. The introduction of the Coolant Longlife Plus product line in the second quarter is expected to drive further growth for the segment,” it added.

Pilipinas Shell said it opened 15 mobility sites in the first half, while its non-fuel network as of end June totalled 153 Shell Select stores, 235 Select Express, 70 Deli2Gos, 415 Lube bays, and 353 Shell Helix Centers.

Mr. Romero said that while the pandemic poses challenges to the country’s economic recovery, it does not preclude growth.

“We intend to continue to be the preferred energy partner for the industries that we serve, and the country itself, to thrive in a better normal,” he said.

On Friday, shares of Pilipinas Shell at the stock exchange declined 1.01% or 18 centavos to close at P17.62 each. — Revin Mikhael D. Ochave

FIRST Gen Corp. recorded an 11% increase in its first-half recurring net income attributable to equity holders to P7.1 billion carried by stronger electricity sales and prices.

The Lopez group’s power generation said in a stock exchange disclosure on Friday that its consolidated revenues from the sale of electricity in the first half rose 12% to P50.8 billion.

Francis Giles B. Puno, First Gen president and chief operating officer, said power demand returned to pre-pandemic levels amid the limitations caused by the slow recovery of the economy.

He added that brownouts experienced in the second quarter have shown the importance of keeping the company’s portfolio properly maintained and operational.

“We are steadily progressing with constructing the country’s first liquefied natural gas (LNG) terminal for delivery in fourth quarter of 2022. We are also working to deliver more power projects across our portfolio despite the uncertainty surrounding the market and its accompanying business risks,” Mr. Puno said.

In its disclosure, First Gen said its natural gas portfolio accounted for 58% of total consolidated revenues. The geothermal, wind, and solar revenues of subsidiary Energy Development Corp. (EDC) accounted for 36%, while the hydro plants accounted for 5%.

First Gen said its natural gas platform posted a P5.2-billion attributable net income for the first half, higher than the P4.5 billion net income posted in 2020.

“The 97-megawatt (MW) Avion power plant enjoyed higher electricity sales as it supplied the grid with supplemental power during constraint periods while the other natural gas-fired plants reaped the benefits of lower income tax rates under Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) law,” the company said.

“These were slightly offset by the 420 MW San Gabriel power plant’s lower generation due to repair work that was completed in the first quarter of the year,” it added.

First Gen said the attributable net income of EDC for the period barely changed at P2.2 billion.

However, EDC’s recurring attributable earnings from its geothermal, wind, and solar platform dropped 3% to P2.3 billion.

“EDC incurred higher power plant and steam field maintenance expenses and foreign exchange losses in the first half. These were offset by lower interest expenses and income taxes,” the company said.

First Gen’s hydro platform posted an increase in its attributable earnings during the first half to P300 million from P200 million in the same period last year.

“The 132.8 MW Pantabangan-Masiway power plants generated higher revenues due to the commencement of its contract with the Manila Electric Co. (Meralco) that was augmented by merchant sales,” the company said.

On Friday, shares of First Gen at the stock exchange fell 4.24% or P1.15 to end at P26 apiece. — Revin Mikhael D. Ochave

ALSONS Consolidated Resources, Inc. (ACR) reported a 37.1% decline in it second-quarter net income attributable to owners to P174.19 million on the back of lower revenues.

The listed holding firm said in a regulatory filing on Friday that its revenues for the period fell 19.6% to P2.47 billion. Revenue from contract with customers reached P2.469 billion, while rental and other income contributed P2.64 million.

Core net earnings for the quarter rose 35.8% to P492.39 million compared with P362.49 million in 2020.

For the first half, ACR reported a 19.6% drop in its attributable net income to P267.06 million from P331.98 million the year earlier.

Revenues during the six-month period fell 12.5% to P4.63 billion. Of the total, revenue from contract with customers contributed P4.626 billion, while P5.39 million came from rental and other income.

Core net earnings of the company for the period reached P871.16 million, up 29.5% from P672.97 million a year ago.

According to ACR, its 210-megawatt (MW) Sarangani Energy Corp. baseload power plant was the key revenue and income driver.

The power plant supplies power to areas in Mindanao such as Sarangani province, General Santos, Cagayan de Oro, Iligan, Dipolog, Dapitan, Pagadian, Samal, Tagum, Kidapawan, and Butuan.

ACR has a portfolio of four power facilities that have an aggregate capacity of 468 MW serving more than eight million people across 11 provinces in Mindanao.

The company is expecting to add another power plant in its portfolio with the P4.5-billion 14.5-MW hydroelectric power plant being built in Sarangani’s Siguil River. The plant is set to begin operations in early 2022.

Moving forward, ACR said it would focus on its renewables segment with seven

hydroelectric plants in various stages of development.

“The next two hydro facilities in the pipeline following the Siguil Hydro plant, are the 22 MW Siayan (Sindangan) Hydro plant in Zamboanga del Norte and the 42 MW Bago Hydro plant in Negros Occidental,” the company said.

On Friday, shares of ACR at the stock exchange dropped 0.81% or one centavo to end at P1.23 apiece. — Revin Mikhael D. Ochave

AXELUM Resources Corp. recorded a 111% increase in its net income for the second quarter to P172.81 million due to volume growth across its core product segments.

For the first half, net income rose 57% to P318.42 million, the listed coconut product manufacturer and exporter said in a stock exchange disclosure on Friday.

Henry J. Raperoga, Axelum president and chief operating officer, said the company’s financial results show a “compelling growth story” amid the challenging times.

“We are receiving increasing order quantities from our blue-chip customers, and at the same time attracting new clients from various geographies, as we continue to roll out innovative and high margin products. This puts us in a unique position to accelerate our growth momentum moving forward,” Mr. Raperoga said.

Axelum’s topline for the six-month period improved 30% to P3.1 billion from P2.39 billion as its core product segments recorded volume growth.

“In terms of volumes, desiccated coconut grew 24%, while sweetened coconut, coconut milk powder and coconut water, increased 34%, 11% and 23%, respectively,” it said.

“For 2021, Axelum has consistently produced record monthly output for its desiccated coconut, coconut water and coconut milk powder segments, keeping on-track to exceed last year’s total volume,” it added.

Operating income rose 105% to P387.38 million from P188.65 million on the back of an enterprise-wide fixed cost discipline.

The company said gross margin “significantly improved” to 26% from 21%, which it attributed to a mix-shift strategy and operational efficiencies, despite higher input and shipping costs.

“Axelum continuous to ramp up production of its premium-priced high-margin product variants targeted for export markets,” it said.

During the period, net margin widened to 10% from 9% despite a normalized effective tax rate of 23% versus 6% after fully realizing special tax incentives earlier this year, it said.

Axelum said it was recently granted tax holidays for its new agglomerated spray-dryer and pressed coconut water, on pioneer producer status, and will take effect in the second half of the year.

Meanwhile, the company said it expects to continue its growth trajectory amid a strong global demand for coconut products and the recovery of its major export markets.

“At present, Axelum is incubating new products in different development phases that will cater to the rapidly-growing global plant-based food industry. These initiatives will extend its product line-up and create additional revenue streams in the coming years. As of June 2021, domestic e-commerce sales have grown by 57% and continuing to gain traction among local consumers,” the company said.

“Operationally, Axelum has boosted daily nut processing activities by 27%, following the reconfiguration of its nut opening plant, which features higher capacity while staying compliant with mandatory health and safety protocols. Moreover, Axelum is currently expanding its warehousing facilities to meet rising demand for its world-class products,” it added.

On Friday, shares of Axelum at the stock exchange rose 0.36% or one centavo to end at P2.79 apiece. — Revin Mikhael D. Ochave

GLOBAL Ferronickel Holdings, Inc. (FNI) reported a second-quarter net income of P735 million, more than double its profit attributable to parent firm equity holders a year ago, on the back of higher ore sales.

In a stock exchange disclosure on Friday, it said ore sales for the quarter rose 64.2% to P2.48 billion, while costs of sales climbed 22.2% to P790.34 million.

“We garnered more favorable results this year as the market experienced a big jump in the price of low-grade nickel ore. We did not experience a stoppage of operations as what happened in April last year,” FNI President Dante R. Bravo said in the disclosure.

For the first half, FNI’s attributable net income improved 226.3% to P641.86 million from P196.69 million.

The company’s revenues for the period rose 68.9% to P2.61 billion. Cost of sales also rose 23.1% to P837.81 million.

A total of 32 nickel ore shipments were completed in the first half, higher than the 23 shipments last year.

Due to higher nickel ore shipments, FNI posted a 38.3% increase in its shipment volume to 1.74 million wet metric tons (WMT) from the 1.258 million WMT in 2020.

“These were 100% exported to China and consisted of 1.465 million WMT low-grade nickel ore and 0.275 million WMT medium-grade nickel ore. The resulting sales mix is 84% low-grade ore and 16% medium-grade ore in 2021 compared to 52% low-grade ore and 48% medium-grade ore in the previous year,” FNI said.

According to FNI, the average realized nickel ore price during the first half rose 27.6% to $31.10 per WMT from $24.38 per WMT a year ago.

It added that the price of low-grade ore for the period rose 61.7% to $31.01 per WMT while the price of medium-grade ore increased 5.2% to $31.58 per WMT.

Meanwhile, FNI said it spent more than P35 million on its coronavirus disease 2019 (COVID-19) pandemic response and is continuously working with different local government units in preventing the spread of the virus.

“We have donated personal protective equipment (PPE) supplies, test kits, disinfectants, vitamins, medical equipment, medical services, rice and other essential goods, and participated in building a molecular laboratory in Surigao and a COVID-19 test center in Palawan,” FNI said.

On Friday, shares of FNI at the stock exchange rose 2.51% or six centavos to end at P2.45 each. — Revin Mikhael D. Ochave

CONCEPCION Industrial Corp. (CIC) posted a P137.14-million attributable net for the second quarter as market conditions improve, it said in a stock exchange disclosure on Friday.

The company’s performance during the quarter is a reversal of the P104.67-million net loss it suffered a year ago.

CIC Chairman and Chief Executive Officer Raul Joseph A. Concepcion said the company is “cautiously optimistic” for the rest of 2021 as the economy begins to normalize due to vaccination efforts.

“While we have seen signs of a market recovery during the first half, conditions remain challenging as the pandemic rages on. We can see the light at the end of the tunnel, and are investing to ensure we are ready for the post-pandemic economic recovery,” Mr. Concepcion said.

CIC’s net sales rose 109% to P3.56 billion, while its consolidated earnings climbed 284.6% to P232 million.

“The 2021 second quarter results benefited from improving market conditions as shown by the 11.8% second quarter gross domestic product (GDP) growth, and the impact of the low-base effect from the comparative period in 2020,” CIC said.

For the first six months of the year, CIC’s attributable net income reached P195.6 million, a reversal of the P35.05-million net loss incurred a year ago. Net sales for the semester increased 45.1% to P6.44 billion.

“The positive results reflect the impact of our strategic investments and the cost restructuring programs we implemented,” CIC said.

On Friday, shares of CIC at the stock exchange fell 3.81% or 80 centavos to close at P20.20 apiece. — Revin Mikhael D. Ochave

D.M. Wenceslao and Associates, Inc. (DMW) reported a 10.7% increase in its second quarter net income attributable to parent equity holders to P300.80 million on the back of higher revenues.

It said in a stock exchange disclosure on Friday that its revenues for the quarter rose 4.7% to P550.39 million.

Delfin Angelo C. Wenceslao, DMW chief executive officer, said the company remains vigilant of risks that will surface amid the ongoing coronavirus disease 2019 (COVID-19) pandemic, including the Delta variant and stricter lockdown measures.

“As risks continue to emerge, we highlight the importance of having a conservatively-managed balance sheet which so far has allowed us to support our stakeholders throughout this pandemic, to continue to distribute dividends to our shareholders, and to pounce on opportunities that presented themselves,” Mr. Wenceslao said.

For the first half, DMW posted an 18% increase in its attributable net income to P852.82 million due to the tax credit related to Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprise Act (CREATE).

Its consolidated revenues during the period dropped 20% to P1.24 billion, as its residential revenue fell 51% to P267 million.

“Only P110 million revenues were booked for Pixel Residences during the period, down from P517 million in the first half of 2020. We note that Pixel Residences is already near full completion and turnover, with little remaining unrecognized revenues. Meanwhile, revenues from MidPark Towers reached P156 million from only P29 million in the first half of 2020,” DMW said.

According to DMW, its building leasing portfolio remained at a 90% occupancy rate, while its recurring income such as rentals from land, building, and other revenues remained stable at P974 million and accounted for 78% of total first half revenues.

On Friday, shares of DMW at the stock exchange rose 0.14% or one centavo to finish at P7 each. — Revin Mikhael D. Ochave