Shell income climbs 11% to ₱5.6 billion

Published March 30, 2020, 12:00 AM

by manilabulletin_admin

By Myrna M. Velasco

Amid industry-wide challenges last year, major player Pilipinas Shell Petroleum Corporation was able to beat the odds as it posted 11.0-percent growth on its net income to ₱5.6 billion compared to a leaner ₱5.1 billion in 2018.

Pilipinas Shell’s profit¬ability in 2019 was comparatively a reverse of the financial fate of most of its industry competitors – which had reported downtrend in their earnings last year.

The local downstream subsidiary of multinational giant Royal Dutch Shell plc said its solid financial outcome last year had been “due to strong marketing delivery and refinery cost savings.”

The oil firm added that such “helped temper the suppressed regional refining margins and higher excise taxes that affected the oil industry.”

Having spent ₱6.0 billion last year to expand the oil firm’s retail network as well as to underpin refinery growth projects and shore up supply and distribution capabilities, Pilipinas Shell President and CEO Cesar G. Romero noted that they will “remain focused on strengthening our core businesses while being mindful of the evolving energy landscape.”

At its refinery, the company said it was able to deliver structural cost savings of ₱700 million, and this somehow countered the depressed regional refining margins.

The firm’s retail business segment registered a modest growth of 1.2-percent “despite higher excise taxes,” with Pilipinas Shell Vice President for Retail Randolph Del Valle emphasizing that “this growth was driven by targeted marketing activities coupled with loyalty programs and further expansion of our network.”