Pilipinas Shell swings back to profitability

Oil giant Pilipinas Shell Petroleum Corp. was able to weather the second year of the pandemic after logging a net income of P3.9 billion last year – a turnaround from a net loss of P16.2 billion in 2020.

After the government lifted COVID-19 restrictions that ramped up business operations, Pilipinas Shell was able to increase its fuel marketing volumes.

Its lubricant and bitumen sales, in particular, increased by 30 percent and 12 percent, respectively, from 2020 levels.

Expanding footprint

This was as the “company remained the preferred supplier of fuels for customers in essential industries such as power and construction.”

Excluding non-recurring items, core earnings amounted to P2.3 billion, dwarfing the previous fiscal year’s P300 million. Operational cash flow, meanwhile, remained at P1.8 billion as the company proactively managed costs, working capital and cash inflows.

Last year, Pilipinas Shell marked the biggest growth in the number of company-owned sites with the opening of its first “Site of the Future” in Silang, Cavite, together with 42 other new mobility stations nationwide.

The presence of popular Filipino restaurants and lifestyle brands in these stations propelled Pilipinas Shell’s nonfuel retail profitability to prepandemic levels, enjoying double-digit growth across its segments.

To date, the oil firm has 187 Shell Select stores, 225 Select Express, 75 Deli2Gos, 455 Lube bays, and 370 Shell Helix Centers.

The presence of “Bida Biker” lanes in Pilipinas Shell’s 100 mobility stations also helped the company respond to the needs of the growing motorcycling community.

According to Pilipinas Shell, all these helped in drawing 1 million members to its loyalty app Shell Go+, marking another milestone for the year. INQ