Pilipinas Shell swings to profitability in Q1

Pilipinas Shell Petroleum Corp. reverted to profitability in the first quarter of 2021, owing to its new supply chain strategy, higher premium penetration across all segments and continued cash conservation measures.

In a regulatory filing on Friday, Pilipinas Shell reported a net income of P1 billion, a reversal from P5.5-billion net loss in the same period last year.

“We are now seeing the positive results of the tough decisions we made that ensured our financial resiliency and competitiveness brought about by the COVID-19 pandemic. The difficult decision to transform our refinery into a world-class import facility allowed us to avoid the significant losses we incurred during the first half of 2020,” said Pilipinas Shell president and CEO Cesar Romero.

“We have yet to see fuel demand to go back to pre-pandemic levels. With our refocused and reset strategy, we are well-positioned to meet the country’s energy requirement as the economy recovers from the pandemic,” Romero said.

However, volume delivery remains below pre-COVID levels, as COVID cases increase and stricter quarantine measures in key cities nationwide resumed during the latter half of March.

Pilipinas Shell’s first quarter total volume is down 31% compared to prior year.

Lubricants and bitumen are up by 12% and 27%, respectively.

This double-digit growth was supported by new customer wins and increase in economic activities in some industries, the company said.

In March, the company unveiled its 2021 to 2025 Strategy Plan banking on the transformation of its supply chain from manufacturing to full importation.

The evolution of its retail business to mobility, and the move to lower carbon operations including pioneering the carbon offset offer in the country and providing low carbon products and services support Royal Dutch Shell’s target of being a net zero carbon emissions business by 2050.

In line with the strategy, mobility will open another “next-generation” site in Marilao Bulacan that features more convenience options, Pilipinas Shell said.

The company said the site also boasts sustainable features such as Lube Bay made out of eco-bricks and energy from solar panels. This is also the first site utilizing Bitumen FreshAir for its pavements.

Meanwhile, non-fuel retail network expansion continued as the company ended the quarter with 152 Shell Select stores, 70 Deli2Gos, and 410 Shell Helix Oil Change and Service Centers.

“Our first quarter performance indicates that we are taking the right steps to deal with the COVID- 19 pandemic. We will persevere and implement our bounce back plans sharply in a safe and reliable manner,” Romero said. -MDM, GMA News