Pilipinas Shell swings to P3.9 billion profit in 2021

MANILA, Philippines — Pilipinas Shell Petroleum Corp. closed 2021 with a net income of P3.9 billion, a massive recovery after its P16.2 billion loss the previous year.

Core earnings amounted to P2.3 billion, a significant increase from the P300 million recorded in 2020, the PSPC said in a statement.

Operational cash flow remained at P1.8 billion as the company sustained proactive management of costs, working capital and cash inflows.

PSPC attributed the growth to fuel marketing volumes, which started increasing as government lifted COVID-19 restrictions and ramped up its campaign to get more people fully vaccinated, but still seven percent below 2020 levels.

“Our strategy of powering progress for the Philippines is working, despite the challenges brought by an unprecedented global health crisis and the lockdowns it triggered,” PSPC president and CEO Lorelie Quiambao- Osial said.

“It has enabled us to remain agile and resilient throughout the challenging period, placing us in a good position for today’s recovery. We remain firm in our commitment to serve the public who are rediscovering the joys of mobility,” she said.

In terms of volume, the PSPC said it increased its lubricant business by 30 percent, and bitumen sales by 12 percent versus 2020.

The company remained the preferred supplier of fuels for customers in essential industries such as power and construction.

In terms of network expansion, PSPC said it marked the biggest growth in the number of company-owned sites with the opening of its first site in Silang, Cavite in September and 42 other new mobility stations nationwide.

The presence of some 70 popular Filipino restaurants and lifestyle brands in these stations provides Shell customers a wide variety of non-fuel-retail (NFR) products.

It ended 2021  with 187 Shell Select stores, 225 Select Express, 75 Deli2Gos, 455 Lube bays, and 370 Shell Helix Centers, allowing PSPC’s NFR profitability to reach pre-pandemic levels and enjoy double digit growth across its segments.

PSPC has continued to advance its sustainability agenda, evolving its operations across the company’s diverse businesses to lower its carbon footprint.

Advocacy of low-carbon product lines has resulted in higher sales.

“We are a steadfast partner in providing high-quality, reliable energy for the Philippines and our customers, and we remain committed to supporting government’s efforts at nation-building through current and future challenges,” Quiambao-Osial said.

For this year, Quiambao-Osial – the first woman to hold the highest leadership position in PSPC – expressed hope that “marketing volumes continue to improve as more people get fully vaccinated, feel safer and get back on the road.”