Pilipinas Shell Petroleum Corp. reported an 11-percent jump in its full-year net income last year to P5.6 billion.
The crude oil refiner attributed last year’s feat to strong marketing delivery and refinery cost savings, which Shell said helped temper the suppressed regional refining margins and higher excise for the domestic industry.
“We will remain focused on strengthening our core businesses while being mindful of the evolving energy landscape,” Pilipinas Shell president and chief executive Cesar Romero said in a statement.
“We will use our foundation of values and strong corporate governance as we continue to deliver on our strategy to make Pilipinas Shell a world-class investment case,” Romero said.
Shell chalked up about P700 million in structural cost savings from its refinery at the end of last year.
Also, Shell has tweaked its refinery to enable flexibility in producing low sulfur fuel oil, in response to the implementation of the policy dubbed “International Maritime Organization 2020.” Vessels have been required to use cleaner fuel as part of efforts to mitigate climate change.
Shell’s refinery in Batangas province intends to identify more growth projects and synergies to make it more competitive.Further, in 2019, Shell spent P6 billion to expand the retail network, support refinery growth projects, and enhance supply and distribution capabilities.
The company saw a 1.2-percent growth in sales volumes for the retail segment despite higher excise.
“This growth was driven by targeted marketing activities coupled with loyalty programs and further expansion of our network,” Shell’s vice president for retail Randy del Valle said.
Shell opened 53 new fuel stations. Its nationwide network now includes 1,126 filling sites. INQ