Pilipinas Shell income surges to P7.8 B

Published August 10, 2022, 4:32 PM

by Myrna M. Velasco

Pilipinas Shell Petroleum Corporation’s (PSPC) net income surged to P7.8 billion in the first half, a phenomenal surge from P2.2 billion in the same period last year and also surpassed the scale of profitability of its biggest competitor, driven by the weekly seesaw in prices at the domestic pumps and upticks in sales volume.

With the acceleration in earnings, the oil firm also declared dividend of P1.0 per share, slated to be paid this September, ending the two-year starvation of dividend payouts to its shareholders.

According to Pilipinas Shell President and CEO Lorelie Quiambao-Osial, “through the disciplined and resilient implementation of our strategy, we have recovered from the deficit in retained earnings in the past two years and are now able to deliver dividends to our shareholders.”

From significant leap in income within the January-June stretch this year, Osial sounded off optimism that the financial performance of the company will be sustained throughout this whole year.

“We are confident to continue our momentum, deliver shareholder returns, and power progress for the Philippines,” she said; while also disclosing that the company will have a rebirth through the change of its corporate name to Shell Pilipinas Corporation.

Osial asserted “as we continue to adapt to changing customer and stakeholder needs, so must our corporate name. We are now Shell Pilipinas Corporation, ready to meet the energy challenge and embrace opportunities in decades to come.”

She explained that “the change in name has the approval of our board of directors, pending that of regulatory bodies,” primarily the Securities and Exchange Commission (SEC).

As noted, the company was able to register a positive cash flow from operations at the scale of P13.7 billion, an impressive climb from the year-ago level of P7.6 billion.

The oil firm said its business-to-business (B2B) volumes “increased across all sectors” during this year’s first semester; with it emphasizing highly perceptible upswing of 49-percent on its sales to the aviation sector, “driven by the continued increase in travel and opening of international and domestic borders.”

The company specified it helped its B2B customers “increase their operational efficiencies through the company’s technical services and the first carbon offsetting program in the country, and made consumer travel more enjoyable with convenience offers, designing its mobility sites to be more than just stopovers but points of destination.”

In addition, Pilipinas Shell’s sales volume of commercial fuels had been up slightly by 5.0-percent; and lubricants similarly logged 5.0-percent volume hike within the period.

Onward, the oil company stated that the targeted growth of its retail network will be sustained – and that shall lead to the portfolio buildup of its mobility stations across 1,300-1400 sites by year 2025 — and such shall be complemented with the introduction of innovative products and services, including the installation of electric vehicle (EV) chargers.

“We are on the cusp of a revolution in energy with the launch of the first of a series of EV charging stations, with more mobility sites using solar power, and we are prepared to bring our global technology expertise on other offerings, should the market need arise,” Osial enthused.