Pilipinas Shell income dips to P3.7 billion in 1st half
Published Aug 7, 2019 12:00 am
By Myrna M. Velasco
Despite a heftier sales volume in the second quarter, the overall net income of Pilipinas Shell Petroleum Corporation in the first half remained at a leaner P3.7 billion, roughly 31.8 percent down compared to a bullish turnout of P5.44 billion in the same period last year.
In a press statement, the company indicated that its volume climbed 11-percent from April to June this year, but bottom line results still went diametrically opposed to such sales performance.
Shell said the first semester financial turnout had been 70-percent less than its full year earnings of P5.1 billion. The company noted though that “cash from operations before working capital changes remains healthy at P8.9 billion.”
Amid transitional financial pains – not just in the Philippine oil industry but globally, Pilipinas Shell emphasized that it will continue “to leverage on its flexible and efficient supply chain,” so it can keep pace with the country’s increasing demand for fuel and industry-related services.
Within the six-month review period, Shell said it was able to grow retail volumes and “maintained its high premium fuel generation” – amid the higher excise taxes being enforced on fuel products.
Leaning on a strong brand and on reputation of retailing world-class quality fuels into customers’ engine tanks, the company indicated that it was able to pump more oil within the review period.
Beyond the traditional petroleum products, the company has also been gaining traction on the non-fuels segment of its business – including convenience stores and the quick service restaurants integrated at its gasoline stations.
“Non-fuels retail segment continues to enjoy double-digit growth year-on-year,” the company said, mainly citing the 137 Select stores that the oil firm already has in its portfolio.
Given the sales climb in the second quarter, Pilipinas Shell President and Chief Executive Officer Cesar G. Romero asserted “the strong volume growth across all our business segments demonstrates the strength of our brand and excellent service to our customers.”
On the company’s earnings for the period, return on average capital had been at 14-percent – touted to be still in the scale of the industry’s best. Gearing likewise remained low at 25-percent even after dividend payment to shareholders.
In a press statement, the company indicated that its volume climbed 11-percent from April to June this year, but bottom line results still went diametrically opposed to such sales performance.
Shell said the first semester financial turnout had been 70-percent less than its full year earnings of P5.1 billion. The company noted though that “cash from operations before working capital changes remains healthy at P8.9 billion.”
Amid transitional financial pains – not just in the Philippine oil industry but globally, Pilipinas Shell emphasized that it will continue “to leverage on its flexible and efficient supply chain,” so it can keep pace with the country’s increasing demand for fuel and industry-related services.
Within the six-month review period, Shell said it was able to grow retail volumes and “maintained its high premium fuel generation” – amid the higher excise taxes being enforced on fuel products.
Leaning on a strong brand and on reputation of retailing world-class quality fuels into customers’ engine tanks, the company indicated that it was able to pump more oil within the review period.
Beyond the traditional petroleum products, the company has also been gaining traction on the non-fuels segment of its business – including convenience stores and the quick service restaurants integrated at its gasoline stations.
“Non-fuels retail segment continues to enjoy double-digit growth year-on-year,” the company said, mainly citing the 137 Select stores that the oil firm already has in its portfolio.
Given the sales climb in the second quarter, Pilipinas Shell President and Chief Executive Officer Cesar G. Romero asserted “the strong volume growth across all our business segments demonstrates the strength of our brand and excellent service to our customers.”
On the company’s earnings for the period, return on average capital had been at 14-percent – touted to be still in the scale of the industry’s best. Gearing likewise remained low at 25-percent even after dividend payment to shareholders.