Pilipinas Shell Petroleum Corp. posted a flat net profit of P2.3 billion in the first quarter amid higher excise taxes and depressed regional refining margins.
The country’s second biggest oil company disclosed to the Philippine Stock Exchange that total volumes rose two percent on the strong performance of its marketing businesses and operational efficiency.
The company did not provide additional financial figures.
“We were able to overcome the challenges during the first quarter by leveraging on our integrated business, the strength of our brand and technical synergies with the Shell group—ensuring that the actions we implement remain consistent with our overall strategy,” said Pilipinas Shell president and chief executive officer Cesar Romero.
“Last quarter, we launched important campaigns to promote our world-class products and services. We are already seeing great results from these activities and we expect this to further improve our performance for the rest of the year,” he said.
Despite the second tranche of excise tax increase, Pilipinas Shell said it kept its premium fuel penetration and retail volumes, leveraging from the strength of its brand and excellent service.
The company during the quarter launched new marketing campaigns promoting high-quality Shell FuelSave and Shell V-Power fuels. Pilipinas Shell’s non-fuels retailing business maintained its double-digit growth as it continues to anticipate the evolving needs of consumers.
Pilipinas Shell plans to increase its capital expenditure budget to P6 billion this year, which includes investments in a hydrogen optimization project in its refinery in Batangas.
“This year, 2019, we are increasing our planned capital expenditure to P6 billion. This is to support the further expansion of our retail business and improve the flexibility of our Tabangao refinery,” said Pilipinas Shell chief financial officer Jose Jerome Pascual III early this week.