Pilipinas Shell more than triples 6-month profit

MANILA, Philippines — Pilipinas Shell Petroleum Corp. (PSPC) saw its net income more than triple in the first semester on the back of sustained volume delivery.

PSPC reported a net income of P7.8 billion in the first half, 255 percent more than the P2.2 billion recorded in the same period last year.

PSPC said its Shell V-Power remains the most preferred fuel brand in the country, while business-to-business volume increased across all sectors during the six-month period.

The company said targeted customer-centric offers tempered the demand volatility brought by the fuel price hikes during the period.

Aviation sales posted a 49-percent jump driven by the continued increase in travel and opening of international and domestic borders.

Commercial fuels volume sales grew by five percent, with the sustained reliable supply of fuels for sector customers, as well as spot sales in power, and other fuel oil customers.

For lubricants, PSPC saw a five percent volume growth, while increasing premium sales volume two-fold across product categories.

Construction and road, on the other hand, rose by eight percent primarily through its premium products.

Given its strong financial results, PSPC was able to declare dividend of P1 per share payable this September.

“Through the disciplined and resilient implementation of our strategy, we have recovered from the deficit in retained earnings in the past two years and are now able to deliver dividends to our shareholders,”  PSPC president and CEO Lorelie Quiambao-Osial said.

“This reflects our strong culture of sustained performance even in the midst of a prolonged volatile business environment. We are confident to continue our momentum, deliver shareholder returns, and power progress for the Philippines,” she said.

Meanwhile, PSPC is embarking on a name change in line with its plan to reposition the company beyond petroleum.

PSPC has approved a change in its corporate name to Shell Pilipinas Corp.

The name change introduces PSPC’s wider future forward approach towards energy transition that will reposition it beyond petroleum, shifting towards sustainable and cleaner energy solutions.

“As we continue to adapt to changing customer and stakeholder needs, so must our corporate name. We are now Shell Pilipinas Corp. ready to meet the energy challenge and embrace opportunities in decades to come. The change in name has the approval of our board of directors, pending that of regulatory bodies,” Quiambao-Osial said.

Aside from the name change, PSPC’s secondary purpose of its articles of incorporation will be amended and broadened to include retail trade.

The amendment is being made as PSPC aims to grow its non-fuels retail (NFR) segment.                                    

The NFR business recorded a 24 percent increase in profitability in the first half, with continued double-digit growth across all its segments.

PSPC’s NFR network is composed of 198 Shell Select stores, 223 Select Express, 81 Deli2Gos, and 462 Lube bays.

“The mobility business of the company is making a strategic choice to further grow its NFR segment with an aspiration to double the segment by 2025 by engaging in retail trade. The NFR segment has steadily grown through the years and was quick to recover from the pandemic,” PSPC said.

Moving forward and subject to the approval of the shareholders of the company and the Securities and Exchange Commission, PSPC said it would own and manage stocks for sale directly to the general public.

The new model will be rolled out in PSPC’s 520 company owned Select stores in the country, with the pilot slated for 2023 and full launch scheduled for 2024.

PSPC currently has a network of about 1,100 sites nationwide, and has a growth ambition of 1,300 to 1,400 mobility sites by 2025.