Pilipinas Shell Petroleum Corp. said Monday net income grew 11 percent in 2019 to P5.6 billion from a year ago on strong marketing delivery and refinery cost savings.
Pilipina Shell said in a disclosure to the stock exchange the higher income helped temper the suppressed regional refining margins and higher excise taxes that affected the oil industry.
“We are pleased with Pilipinas Shell’s business delivery for 2019, particularly in the light of last year’s business environment. Our company remains fundamentally robust and resilient. The marked volume growth across our business segments last year was not by chance; it is the result of consistent strategy and clear-cut focus on our objectives,” said Pilipinas Shell president and chief executive Cesar Romero.
Romero, however, said the company was cognizant of the tremendous impact the coronavirus pandemic is having on people and business.
“We continue to look for ways to appropriately support our key stakeholders and business partners, and commit to make the right sustainable decisions for the company in this time of challenges and uncertainties,” he said.
A robust marketing agility, technological capability and adaptability, integrated value chain and financial discipline helped the company post a positive performance amid a volatile business environment.
The company spent P6 billion to expand the retail network, support refinery growth projects and enhance supply and distribution capabilities in 2019.
Pilipinas Shell said retail volumes grew by 1.2 percent in 2019 despite higher excise taxes.
“This growth was driven by targeted marketing activities coupled with loyalty programs and further expansion of our network,” said Randy del Valle, Pilipinas Shell vice president for retail.
The company has a retail network of 1,126 sites in key locations in the country and delivered its retail expansion commitment with 53 new stations last year.
Non-fuel retail business grew 15 percent from the previous year.
Lubricants, bitumen, aviation and commercial fuels all posted volume increases, contributing to the overall commercial volume growth of 9 percent.
Pilipinas Shell owns the country’s only bitumen production facility which positions the company to efficiently support the government’s “Build, Build, Build” program.
Pilipinas Shell continues to operate an integrated and highly efficient supply chain network.