Pilipinas Shell bounces back, records H1 net income of P2.2B

Pilipinas Shell Petroleum Corp. trumpeted a rebound with a first-semester net income of P2.2 billion this year from a net loss of P6.7 billion in 2020, thanks to a major pivot done amid the pandemic.

The turnaround “validates our bold decision to transform the way we do business amid uncertain conditions resulting from the COVID-19 pandemic,” Pilipinas Shell president and chief executive Cesar Romero said in a statement. Romero was referring to the oil giant’s decision last year to scuttle its refinery business and transform their Tabangao facility in Batangas into a dedicated import facility. Intended to cater to the fuel needs of Metro Manila, Southern Luzon and Northern Visayas, the Shell Import Facility Tabangao or Shift was inaugurated last June 30.

“This Shift means stronger supply reliability, greater operational efficiency and improved overall logistics performance,” Romero said.

Beyond this supply chain strategy, Pilipinas Shell also attributed its January-June recovery to the company’s strong marketing performance along with prudent cost and capital expenses management. “We intend to continue to be the preferred energy partner for the industries that we serve, and the country itself, to thrive in a better normal,” Romero said.

Continuing travel restrictions kept growth in first-half sales volume flat, but in the second quarter alone, sales volume grew by 18 percent year-on-year.

Similarly, strong volume and profit performance were also seen in Pilipinas Shell’s lubricants business. In the first half of 2021, Shell opened 15 new stations following its new retail business model called “Mobility” sites.

Mobility sites are credited to have the biggest contribution to first-half earnings. Retail grew by 29 percent year-on-year, due to innovative marketing initiatives.