Excluding these one-off charges relating to the Tabangao transformation, normalized earnings stand at a net loss of P6.4 billion, down from the P4.4 billion net income made in the same period last year but up from the P6.7 billion net loss reported at the end of the Q2 2020. Discounting the P5.7 billion in inventory valuation losses, core net loss has improved at P0.7 billion for Q3, up from Q2’s P0.9 billion.

Pilipinas Shell has boosted its efforts to maintain financial resilience in the midst of the Covid-19 pandemic by posting savings of P2.5 billion by the end of the third quarter (Q3), exceeding its cash conservation target of P2 billion by yearend. Savings of P1.2 billion were generated from OPEX, with P1.3 billion from CAPEX.

Slow but sure

Cesar G. Romero, President and Chief Executive Officer of Pilipinas Shell, remains optimistic. Government’s efforts to gradually reopen the economy by prudently relaxing quarantine restrictions are slowly giving elbow room for the economy to recover.

“The wins are coming in gradually as more businesses operate at increased capacity in the areas of manufacturing and transportation, to name a few. Our balance sheet, technical capability and resources are solid and serve us well in continuing to provide Filipinos with high-quality fuel products despite the challenging economic environment and to make the right sustainable decisions to protect the long-term interests of our shareholders,” he says.

Gearing rose to 47 percent, mainly because of lower equity from net loss rather than an increase in net debt. Excluding the impact of Refinery one-off charges, the Company’s gearing stands at 41 percent.

Stronger supply chain

To support its change in Supply chain strategy, Pilipinas Shell’s 54ML-capacity terminal in Subic became operational last October to serve the demand of Northern Luzon, with the Tabangao Import Facility in Batangas serving Luzon and Northern Visayas, and the Northern Mindanao Import Facility in Cagayan De Oro serving the rest of the Visayas and Mindanao.

The company now has a more resilient network of three medium-range (MR) import terminals with sufficient finished products capacity to effectively serve the demands of customers nationwide.

“The pandemic has forced us to rethink the way we do things, while ensuring the quality of service that Filipinos expect from us. Hence, we shifted our supply-chain strategy from manufacturing to full import-based operations to allow us to enhance our cost and supply-chain competitiveness, and leverage Shell’s portfolio of assets and highly competitive Global Products Trading Network.” Romero says.

He adds that the Company plans to re-invest at least P1 billion in the next few years to fully transform Tabangao into a world-class import facility that will support its marketing growth aspirations.

Customer loyalty

Pilipinas Shell continues to expand its retail network, with 1,135 sites nationwide to date. Retail sales has increased via bounce-back strategies employed. With the launch of Shell GO+ app last November 3, customers earn points per purchase of Pilipinas Shell products, track their points real-time, and redeem personalized offers and partner rewards.

Targeted campaigns under the new normal were also implemented nationwide such as free rice via Bigas Up at Shell, and free essentials (alcohol and water) via “Safety Bundle for the Road”.

Other than fuel

Pilipinas Shell Select stores now offer more frozen goods and groceries to the public through food delivery partners GrabMart and Food Panda. Washable face masks are also made available via partnership with Pilipinas Shell Foundation, Inc. as part of Pilipinas Shell’s corporate social responsibility program. To reach more customers, car care home services continue to be available under the new normal.

All these initiatives plus promotions that offer additional value to customers like Jollibee gift certificates via Bida ang Biyahe, discounted prices for any two snack items via “Better Twogether” and perks for frontliners during National Heroes Day helped deliver over 50 percent income increase in Q3 vs Q2. The first nine months of 2020 has seen Pilipinas Shell open six Select stores, 15 Shell Helix Oil Change+ stores and 19 co-locators.

Although set for a virtual launch on November 27, Shell Bitumen FreshAir (BFA) has already been successfully used in the asphalting of roads in Bohol as part of the City’s eco-friendly initiatives. BFA is a ready-to-use bitumen that can effectively reduce the impact of road paving on local air quality levels, as well as neutralize bitumen odor.

New Chief Finance Officer

Pilipinas Shell also announces the appointment of Reynaldo Abilo as Vice-President Finance, Treasurer and Chief Risk Officer effective January 1, 2021, taking over from Jose Jerome Pascual III after almost six months of on-boarding and handover. Abilo is currently Pilipinas Shell’s Corporate Audit and Assurance Manager and has 12 years of local and global Shell experience both as a strategy and finance professional. He was previously based in Singapore and has been the Finance Lead for Royal Dutch Shell’s Downstream Marketing Growth Strategy in 2016. Pascual will stay on as special adviser to the CEO until his planned retirement at the end of March 2021.

For Enquiries:

Cesar Abaricia
Media Relations Manager, Philippines

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this press release “Shell”, “Shell Group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Royal Dutch Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this press release refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

This press release contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this press release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s Form 20-F for the year ended December 31, 2019 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this press release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this press release, June 4, 2020. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this press release.

We may have used certain terms, such as resources, in this press release that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.


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