Pilipinas Shell Petroleum Corp. registered a net income of P3.7 billion in the first six months of the year, down 31 percent from P5.4 billion year-on-year.
Pilipinas Shell, however, said in a disclosure to the Philippine Stock Exchange on Wednesday the first-half profit was already 70 percent of the full year earnings of P5.1 billion in 2018.
The country’s second biggest oil company said total volumes increased 11 percent in the second quarter as marketing businesses posted volume growth across all segments.
“We will continue to invest in profitable ventures to deliver competitive returns to our shareholders. The country’s macro-economic fundamentals remain strong and the government is serious about curbing smuggling and enhancing the ease of doing business. We look forward to playing our part,” said Pilipinas Shell president and chief executive officer Cesar Romero.
Pilipinas Shell began the engineering works for a hydrogen optimization project of its 110,000 barrel-per-day refinery in Tabangao, Batangas province in the second quarter. The project aims to improve the refinery’s crude intake flexibility and product slate.
The company set a capital expenditure budget of P6 billion for the hydrogen project and retail network expansion this year.
The company said it would leverage on its flexible and efficient supply chain to support the country’s demand for high-quality fuels and services.
Pilipinas Shell expanded retail volumes and maintained a high premium fuel penetration, against the backdrop of higher excise taxes during the period.
The strong performance is mainly attributed to its world-class fuels and strong brand, further enhanced by its successful marketing campaigns in the first quarter.
“We are pleased with the business delivery in the second quarter. The strong volume growth across all our business segments demonstrates the strength of our brand and our commitment to deliver world-class fuels and excellent service to our consumers,” said Romero.
