The net income after tax (NIAT) of Pilipinas Shell Petroleum Corporation hit P5.392 billion in the first half, but the bulk has been attributed to its one-time gain of P3 billion from trademark sale.

“Excluding this trademark gain, PSPC’s NIAT in 2009 would have been higher by 17% compared to the same period of last year,” the company stressed.

On its fuel sales volume, Shell logged around 5.4 percent decline from January to June, as compared to the year-ago level.

The company though emphasized that beyond that setback, “PSPC managed to post growth in key markets including retail fuel sales, lubricants and bitumen during the period.”

Shell vice president Roberto S. Kanapi added the company “managed to grow in key markets due to sustained brand-building promotion and aggressive pricing strategy, coupled with network growth and operational excellence.”

Two primary factors have been traced as main driver for the oil firm’s first half financial performance – the shift in inventory valuation method from Weighted Average (WAVE) to First-In, First-Out (FIFO): and the shift in its pricing strategy to a weekly from the monthly basis previously.

The company said its migration to FIFO for its method of inventory took effect January 1 this year. It explained that such inventory system “was driven by the change in the company's ERP systems.”

The company said this has been anchored on the adoption of a new computerized accounting system based on Global Systems Application and Product Data Processing or GSAP.

“Consequently and as required by International Accounting Standards, 2008 figures have been restated and the value of opening inventories for the first half of 2009 was reduced by close to P6 billion with a corresponding reduction in opening Retained Earnings,” Shell said.