Pilipinas Shell achieves P3.4B income despite 3Q lockdowns
Nov 12, 2021
Pilipinas Shell Petroleum Corporation (Pilipinas Shell) grew its net income to PhP3.4 billion by end September, a significant recovery from its PhP13.9 billion loss in the same period last year. This despite the mobility slowdown resulting from the two-week Enhanced Community Quarantine (ECQ) implemented in NCR and select provinces last August, and the succeeding Alert 4 restriction.
“Our renewed strategy has been proven effective for our business to thrive amidst the resurgence of selected lockdowns in the country. We are continuously growing our capacity for the remainder of 2021, to prepare for the near and medium-term demand pick-up as active new COVID cases decline, vaccination programs accelerate, and travel restrictions ease,” says Pilipinas Shell President and CEO Cesar Romero.
The Company’s borrowing levels remain controlled, while working capital requirements increased as global market prices for gasoline and diesel increased by ~50% from December 2020.
Unrivaled premium Shell products for all segments
While overall YTD3Q21 marketing volume delivery slightly declined by 6% vs PY due to increased lockdowns, Pilipinas Shell sustained its value delivery through its successful marketing programs and premium product offerings across businesses.
Mobility’s premium fuel penetration increased to 31%, with Shell’s V-Power brand maintaining its position as the most preferred fuel brand in the country. Loyalty price discounts for Shell GO+ members integrate both fuel and non-fuel products, providing a complete service to customers.
Commercial fuels and bitumen continue to be the preferred supplier for key construction sector players. Shell Bitumen Freshair, its eco-friendly bitumen product, continues to be a significant value driver and is currently used in projects like the Php30-billion Cebu-Cordova Link Expressway, an 8.5-kilometer toll road project that includes a bridge connecting Cebu in Cebu City to Mactan island through the town of Cordova.
On the other hand, Shell’s lubricants business continues to thrive in both volume, which is up 36% vs PY and value, with premium products growth and deeper consumer penetration nationwide seen as key levers.
Aviation volumes continue to improve, with volume recovery in the third quarter of over 60% compared to the same period last year, driven by an increase in passenger flights as domestic and international flight restrictions ease.
Future-proof mobility site network expansion
The new “Site of the Future” mobility station in Acienda Silang, Cavite launched last September 28 is the forerunner of innovation for the Philippines and all other mobility stations worldwide. The site’s customer-centric format is designed to enhance customer experiences, is future-proof in offering more energy solutions.
Meanwhile, Pilipinas Shell’s non-fuel retail network expansion continues with 156 Shell Select stores, 219 Select Express, 72 Deli2Gos, and 424 Lube bays. Non-fuel retail operating profit grew by 28% vs same period last year.
The company’s CAPEX program is on-track, with some PhP2.2 billion spending, approximately 68% of which is spent on network expansion. 25 new mobility sites were launched from January to September this year. The rest was used for supply chain maintenance and upgrades, in preparation for demand resurgence.
Pilipinas Shell continues to lead in the energy transition with President and CEO Cesar Romero and Vice President and General Manager for Mobility Randy del Valle participating as industry experts and resource speakers in national and regional forums like the Asian Forum on Enterprise for Society 2021 and 9th Philippines Electric Vehicle Summit.
Efforts to work towards a low-carbon future include getting a LEED Green Building Silver rating under Interior Design and Construction: Commercial Interiors Category for the company’s new office spaces at The Finance Center in Bonifacio Global City, Taguig. The certification validates Shell’s efforts to develop indoor spaces that offer a healthy, sustainable and productive work environment.
The company also sustained its commitment to strengthen local economies by supporting the top three start-ups of Shell LiveWIRE: Panublix, an online marketplace for indigenous weavers; Agro-DigitalPH, which connects farmers digitally to their customers; and SACHI (Sustainable and Compostable Horizons Industry) – Group, Inc., a manufacturer of eco-friendly materials, through mentorship, training, and a monthly product development allowance.
Pilipinas Shell is the first Philippine energy company to support the Task Force on Climate-related Financial Disclosures (TCFD) reporting guidelines as part of its commitment to uphold high corporate governance standards in the country. The addition of TCFD to the company’s sustainability framework is seen to enhance transparency in climate-reporting, and promote more informed financial decision-making for its investors and business partners.
Last September 28, Pilipinas Shell took home the 2021 Asia Corporate Excellence & Sustainability (ACES) awards for the ‘Green Innovation category’ for its first mobility station in Plaridel, Bulacan that was built using eco-bricks.
Media Relations Manager, Philippines
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