Pilipinas Shell Petroleum Corp. plans to sell excess power generated from its 110,000 barrel-per-day refinery in Batangas to the spot market.
The company disclosed to the Philippine Stock Exchange that its board approved an amendment to its articles of incorporation to include the sale and purchase of electricity.
“The registrant intends to sell the excess power it produces to the WESM (Wholesale Electricity Spot Market) as an additional source of revenue,” Pilipinas Shell said.
The board at a special meeting on April 20 approved the amendment to the articles of incorporation to expand secondary purpose to include the sale of excess electricity through the WESM.
The amendment will be submitted to shareholders for approval during the annual stockholders’ meeting on May 16.
The company operates a refinery in Tabangao, Batangas that produces its own electric power through turbines fueled mainly by natural gas.
The self-generation of electricity is covered by a certificate of compliance issued by the Energy Regulatory Commission.
Pilipinas Shell’s refinery has three turbine generators, including one that serves as back up. The turbine generators generate power and produce steam utilized for the manufacturing of fuel products.
Pilipinas Shell ended 2016 with 996 active retail sites across the country and recorded net income of P7.4 billion, up from P3.6 billion in 2015, due to a retail network expansion program.
“The strong financial performance is driven by increased premium fuel penetration, strong retail volume growth, successful marketing campaigns and logistics cost savings that offset the impact of lower commercial sales volumes and extended refinery downtime in fourth quarter,” Pilipinas Shell said.
Revenues reached P136.76 billion in 2016, down from P156.98 billion in 2015 due to lower oil prices.
“The growth of Pilipinas Shell’s retail network, which continues to be the nation’s most efficient in terms of throughput, underpins Pilipinas Shell’s ability to generate strong cash flows to fund its investment programs,” the company said.
It is also investing $13 million to upgrade the refinery to produce bitumen, a crucial component of asphalt used for road surfacing and roofing.