Pilipinas Shell Petroleum Corp. said Wednesday net income jumped 254 percent in the first half to P7.8 billion from P2.2 billion a year ago on the back of record fuel prices.
“Through the disciplined and resilient implementation of our strategy, we have recovered from the deficit in retained earnings in the past two years and are now able to deliver dividends to our shareholders. This reflects our strong culture of sustained performance even in the midst of a prolonged volatile business environment. We are confident to continue our momentum, deliver shareholder returns and power progress for the Philippines,” said PSPC president and chief executive Lorelie Quiambao-Osial.
Global product prices reached historical highs from the start of 2022, causing a rise in working capital requirements. PSPC said strong fiscal management allowed the company to maintain a controlled level of borrowings.
Excluding movement in working capital, the company said it ended with a positive cash flow from operations of P13.7billion—an upside from the previous year’s P7.6 billion.
“The world is evolving, and so is Shell. Through our 108-year history, we have been offering our customers more than just high-quality products and services,” said Quiambao-Osial.
PSPC helped B2B customers increase their operational efficiencies through the company’s technical services and the first carbon offsetting program in the country. It made consumer travel more enjoyable with convenience offers, designing its mobility sites to be more than just stopovers but points of destination.
“We are on the cusp of a revolution in energy with the launch of the first of a series of EV charging stations, with more mobility sites using solar power, and we are prepared to bring our global technology expertise on other offerings, should the market need arise,” she said.
Quiambao-Osial said PSPC is more than just a fuels and lubricants business and is changing its name to reflect this.
“As we continue to adapt to changing customer and stakeholder needs, so must our corporate name. We are now Shell Pilipinas Corp., ready to meet the energy challenge and embrace opportunities in decades to come. The change in name has the approval of our board of directors, pending that of regulatory bodies,” she said.
Shell V-Power remains the most preferred fuel brand in the country. Targeted customer-centric offers tempered the demand volatility brought by the fuel price hikes in the quarter.
It said B2B volume increased across all sectors in the first half. Aviation sales improved 49 percent from the previous year, driven by the continued increase in travel and opening of international and domestic borders.
Commercial fuels increased volume sales by 5 percent with the sustained reliable supply of fuels for sector customers, spot sales in power and other fuel oil customers.
Lubricants saw a 5-percent volume increase, while increasing premium sales volume two-fold across product categories.
Construction and road grew by 8 percent primarily through its premium products.
The company said it is accelerating its growth ambition of 1,300 to 1,400 mobility sites by 2025, with a recent deal with Northern Star Energy Corp.