Pilipinas Shell reports flat net income of P2.3 billion in Q1

Published May 9, 2019, 12:00 AM

by manilabulletin_admin

By Myrna M. Velasco

The listed local subsidiary of Anglo-Dutch Shell has logged a flattish income of P2.3 billion in January to March this year, indicating then that it was able to rise above headwinds that pummeled the industry within the period.

Pilipinas Shell President and CEO Cesar G. Romero
Pilipinas Shell President and CEO Cesar G. Romero

Pilipinas Shell Petroleum Corporation’s profitability this year is the same as the P2.3 billion it posted in the same period last year. For the quarter, the company paid P3.00 dividends per share last April 30.

The company cited industry roadblocks such as “higher taxes and depressed regional refining margins,” although it noted that on the whole, its net earnings still reflected an improvement.

In terms of sales volume, the company said that had expanded 2.0 percent in the first three months of the year, generally driven by the strong performance of its marketing businesses as well as the efficiency gains it achieved across operational segments.

“The company maintains its industry-leading return on average capital employed at 15 percent,” the oil firm said; adding that even its gearing had remained low at 25 percent.

Pilipinas Shell President and CEO Cesar G. Romero said the company was able “to overcome the challenges during the first quarter by leveraging on our integrated business, the strength of our brand and technical synergies with the Shell group.”

The oil company asserted that despite the higher excise taxes imposed on petroleum products in the initial months this year, “Pilipinas Shell maintained its premium fuel penetration and retail volumes.”

It added that several marketing campaigns launched by the company had helped shore up patronage on its fuel products being retailed at the pumps; as well as on other segments of sale on its petroleum products, like commercial and industrial end-users.

At the same time, the company claimed that its non-fuels retailing business “maintains its double-digit growth as it continues to anticipate, and cater to, the evolving needs of its consumers.”

Shell is currently the country’s second biggest player in the deregulated downstream oil industry – which to date already counts roughly 80 players competing in the marketplace.