As oil demand sprang back closer to pre-pandemic levels in recent months, the net income of second biggest oil industry player Pilipinas Shell Petroleum Corporation remarkably recovered to P2.2 billion in the first half from bottom line crash of P6.7 billion in the same period last year.
As noted by Pilipinas Shell President and CEO Cesar G. Romero, “We’re seeing a significant rebound from our P6.7 billion loss” stressing that such “validates our bold decision to transform the way we do business amidst uncertain conditions resulting from the Covid-19 pandemic.”
The oil firm said its rebound on earnings in the first six months this year had been propelled by opening of additional 15 retail network or mobility sites, as well as continued expansion of non-fuel ventures, including its Shell Select stores, Select Express, lube bays, Deli2Gos, and Shell Helix centers.
“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 company specified.
Onward, Pilipinas Shell indicated that “the introduction of the Coolant Longlife Plus product line in the second quarter is expected to drive further growth for the segment.”
The oil firm emphasized its financial upturn within January-June this year could be attributed “not only to supply chain strategy but also to its strong marketing performance,” while at the same time “ensuring financial strength and resilience of its business via strong balance sheet and prudent cost and capex (capital expenditure) management.”
By far, a major ‘turning point decision’ embraced by the company last year was to close down its domestic oil refining operations; and to have its facility in Tabangao, Batangas transformed into a medium-range import terminal.
Re-branded as “SHIFT” or the Shell Import Facility Tabangao, Romero expounded that the terminal will spark off “stronger supply reliability, greater operational efficiency and improved overall logistics performance.”
The Pilipinas Shell chief executive qualified though that the Covid-19 pandemic still continues “to pose challenges to the country’s economy recovery,” and that it turn could impact also on the rebound of some industries, including the downstream oil sector.
The silver lining to such precarious situation, Pilipinas Shell pointed out, will be for the mobility stations to continually facilitate the transport of goods and critical services “despite the imposition of tighter restrictions on mobility due to the increasing number of locally transmitted cases of the Covid Delta variant.”
Romero asserted “all our businesses will continue to meet our customers’ essential needs, following government health and safety protocols.”