Pilipinas Shell Petroleum Corp. on Monday reported a net income after tax of P10.37 billion in 2017, up 39 percent from P7.44 billion in 2017, despite aggressive competition and the two-and-a-half-month maintenance shutdown of its Tabangao refinery in Batangas.
Pilipinas Shell said in a disclosure to the Philippine Stock Exchange the robust earnings were driven by strong retail volume growth following a network expansion and sustained uptake of its world-class V-Power fuels, strong regional refining margins and inventory holding gains.
“Pilipinas Shell delivered P10.4 billion in net income and generated P10.7 billion of cash from operations in 2017, 39 percent and 26 percent higher than the prior year. This is a testament to the company’s commitment and continuing focus towards robust cash generation at optimal returns,” said Pilipinas Shell president and chief executive officer Cesar Romero.
Romero said the higher earnings in 2017 would allow the company to sustain its commitment to high dividend payout at industry-leading dividend yields.
“We are proud to reward our shareholders with a P5.14 dividend per share. This represents a superior dividend yield of close to 9 percent based on the share price at the time of our dividend announcement, making SHLPH one of the highest dividend yielding stocks listed on the PSE. We see this as an attestation of our drive and aspiration to be valued as a world-class, and strategic long-term investment opportunity,” he said.
Sales reached P169.47 billion in 2017, higher than P136.78 billion in 2016. Retail sales volume rose four percent, underpinned by high premium fuel penetration at 27 percent.
V-Power Diesel and V-Power Gasoline uptake increased 17 percent and 7 percent, respectively, due to the successful introduction of V-Power with the breakthrough DYNAFLEX technology.
Pilipinas Shell opened 66 new retail stations in 2017, closing the year with a total of 1,044 retail stations.
The company said it remained committed to maintain a highly efficient retail network, with expansion, capital allocation and focus on industry-leading returns and dividend yields.