Pilipinas Shell Petroleum Corp. reported a 19.7 -percent decline in net income in the first quarter to P2.32 billion from P2.89 billion a year ago, on higher expenses during the period.
PSPC said in a disclosure to the stock exchange “softer regional refining margins” during the quarter contributed to the roughly 20-percent decrease in overall earnings.
Sales rose to P49.53 billion in the first quarter from P41.64 billion in the same period last year on higher product prices, driven by the increase in the average global oil prices.
Expenses in the three-month period soared to P3.385 billion from P2.977 billion in the same period last year as a result of increase in marketing, advertising, throughput fees, higher depreciation and amortization from additional capital investments.
PSPC said the P2.32-billion net earnings at the end of the first quarter translated into an industry-leading return on capital of 27 percent on a trailing 12-month basis, demonstrating the company’s continuing prudent and effective utilization of shareholder capital.
Operational cash flows also increased 23 percent to P3.5 billion year-on-year, driven by total sales volume growth of 4 percent, higher premium fuel penetration and better working capital management.
PSPC said it sustained delivery of strategic priorities by maximizing cash generation while optimizing shareholder returns, disciplined expansion and capital allocation and attractive dividend policy.
The company said sales volumes were sustained while increasing premium fuel sales, closing the quarter with 27 percent V-Power penetration.
PSPC opened four new stations, ending the quarter with 1,047 retail sites. The non-fuel retailing business closed the quarter with 21-percent growth.
PSPC added 11 new Shell Select stores, 7 new deli2Go offers and 9 new lube bays.