Pilipinas Shell reverts to profitability, nets P2.2B in H1

Pilipinas Shell Petroleum Corp. saw its bottom line return to profitability in the first half of 2021 on the back of its shift in supply chain strategy.

In a disclosure to the Philippine Stock Exchange on Friday, Pilipinas Shell reported a net income of P2.2 billion during the January to June period, a turnaround from P6.7 billion net loss in the same period in 2020.

“We’re seeing a significant rebound from our P6.7 billion loss in the same period last year. It validates our bold decision to transform the way we do business amidst uncertain conditions resulting from the COVID-19 pandemic,” said Pilipinas Shell president and CEO Cesar Romero.

On June 30, the company opened the Shell Import Facility Tabangao (SHIFT), marking the transformation of its refinery into an import terminal that will meet fuel demand in Metro Manila, Southern Luzon and Northern Visayas. 

In August 2020, the company announced it was permanently shutting down the refinery as it shifted its strategy from manufacturing to importation to sustain its business amid the economic impact of the COVID-19 pandemic.

“This SHIFT means stronger supply reliability, greater operational efficiency, and improved overall logistics performance,” Romero said.

Pilipinas Shell attributed its strong showing for the first six months not only to supply chain strategy but also to its strong marketing performance.

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.

The company said its first semester 2021 marketing volume delivery remains flat against previous years due to travel restrictions brought about by COVID with pockets of restrictions in Manila, Visayas and Mindanao.

But marketing volume in the second quarter alone grew by 18% in 2021.

The increase stems from innovative marketing initiatives that focus on the consumer’s fuel and non-fuel needs and use digital means to improve customer engagement and perception, the company said. —KBK, GMA News