Shell posts flat earnings growth in Q1

MANILA, Philippines — Pilipinas Shell Petroleum Corp. (PSPC) reported flat earnings in the first quarter despite headwinds from higher excise taxes and depressed regional refining margins.

In a statement yesterday, PSPC said net income amounted to P2.3 billion, unchanged from the P2.32 billion recorded in the same period a year ago.

The company has not yet released its financial statement for the quarter.

“We were able to overcome the challenges during the first quarter by leveraging on our integrated business, the strength of our brand and technical synergies with the Shell group – ensuring that the actions we implement remain consistent with our overall strategy,” PSPC president and CEO Cesar Romero said.

PSPC said its total sales volume grew two percent year-on-year, reflecting a slight improvement amid higher excise taxes and depressed regional refining margins.

The oil firm attributed the growth to the strong performance of its marketing businesses and operational efficiency to surpass the challenges and changes during the period.

Despite the second tranche of excise tax increase, PSPC said it maintained its premium fuel penetration and retail volumes as it continues to leverage from the strength of its brand, world-class fuels and excellent service.

“Last quarter, we launched important campaigns to promote our world-class products and services. We are already seeing great results from these activities and we expect this to further improve our performance for the rest of the year,” Romero said.

During the quarter, the company launched new marketing campaigns promoting high-quality Shell FuelSave and Shell V-Power fuels.

The non-fuels retailing business maintained its double-digit growth as it continues to anticipate and cater to the evolving needs of its consumers.

In the commercial segment, PSPC saw volume growth in its lubricants business but did not provide further details.

The oil firm attributed this to the success of its “Outride Anything” marketing campaign and strategic wins in other key business-to-business fuels sectors.

While the quarter has been tough for the manufacturing business, as regional refining margins remain low, Pilipinas Shell continues to focus on keeping the refinery reliable and implementing cost-optimization projects to enhance its operational and financial performance.

Both the Tabangao refinery and the North Mindanao import facility maintained their excellent records on safety and reliability.