Pilipinas Shell swings to profit with nearly P4-billion net income

PILIPINAS Shell Petroleum Corp. on Monday announced that its net income for 2021 jumped to P3.85 billion, bouncing back from its P16.18-billion loss in the previous year, on the back of “sustained network growth.”

In a disclosure to the exchange, the listed oil firm logged P2.3 billion in core earnings, or nearly eight times higher than the previous year’s P300 million.

It also maintained a P1.8-billion operational cash flow as it continues “to sustain proactive management of costs, working capital and cash inflows.”

“Our strategy of powering progress for the Philippines is working, despite the challenges brought by an unprecedented global health crisis and the lockdowns it triggered,” Pilipinas Shell President and Chief Executive Officer Lorelie Quiambao-Osial said in a statement.

“It has enabled us to remain agile and resilient throughout the challenging period, placing us in a good position for today’s recovery. We remain firm in our commitment to serve the public who are rediscovering the joys of mobility,” she added.

Pilipinas Shell said that its fuel marketing volumes began to go up when the government has lifted the coronavirus disease 2019 (COVID-19) lockdown and became more aggressive with its vaccination drives.

In a separate disclosure, the firm said it recorded a 12.9% increase in net sales to P17.72 billion from 2020’s P15.7 billion.

In terms of volume among its segments, its lubricant business remained to be its main growth driver with a 30% increase. Bitumen sales followed with a 12% growth. The company is the only bitumen or asphalt producer in the country.

Ms. Quiambao-Osial said she hopes that “marketing volumes continue to improve as more people get fully vaccinated, feel safer and get back on the road.”

In September 2021, Pilipinas Shell opened its first “Site of the Future” in Silang, Cavite, a mobile station that provides fuel and other products and services. It was followed by 42 other new stations.

The presence of some 70 popular Filipino restaurants and lifestyle brands in these stations provides Pilipinas Shell customers a wide variety of non-fuel-retail (NFR) products, the company said.

A double-digit growth across its NFR segment — including 187 Shell Select stores; 224 Select Express stores; 75 Deli2Go kiosks; 455 lube bays; and 370 Shell Helix centers — was recorded as its profitability reached pre-pandemic levels.

At the local bourse, shares in the oil company on Monday went up by 30 centavos or 1.69% to close P18 apiece. — Marielle C. Lucenio