Pilipinas Shell Petroleum Corp. said Friday it posted a net income of P1 billion in the first quarter, a strong rebound from the P5.5-billion loss it booked in the same period last year.
The company attributed the financial recovery in the first quarter to new supply chain strategy, higher premium penetration across all segments and continued cash conservation measures.
“We are now seeing the positive results of the tough decisions we made that ensured our financial resiliency and competitiveness brought about by the COVID-19 pandemic,” Pilipinas Shell president and chief executive Cesar Romero said in a statement.
“The difficult decision to transform our refinery into world-class import facility allowed us to avoid the significant losses we incurred during the first half of 2020,” he said.
Pilipinas Shell shut down its 110,000-barrel-per-day refinery in Tabangao, Batangas last year amid the COVID-19 impact on local and global demand.
“We have yet to see fuel demand to go back to pre-pandemic levels. With our refocused and reset strategy, we are well-positioned to meet the country’s energy requirement as the economy recovers from the pandemic,” Romero said.
The company’s cash flow from operations excluding movement in working capital reached P3.9 billion, while borrowings remained at a manageable level.
The company said volume delivery was still below pre-COVID levels, as COVID cases increased and stricter quarantine measures in key cities nationwide resumed in the latter half of March.
Pilipinas Shell’s first quarter volume was down 31 percent from a year ago, as marketing volume went down by 16 percent.
Lubricants and bitumen went up by 12 percent and 27 percent, respectively, supported by new customer wins and increased economic activities in some industries.
The company unveiled in March its 2021-2025 Strategy Plan, banking on the transformation of its supply chain from manufacturing to full importation.
Pilipinas Shell said non-fuel retail network expansion continued as the company ended the first quarter with 152 ShellSelect stores, 70 Deli2Gos and 410 Shell Helix oil change and service centers.
“Our first-quarter performance indicates that we are taking the right steps to deal with the COVID-19 pandemic. We will persevere and implement our bounce back plans sharply in a safe and reliable manner,” said Romero.