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Pilipinas Shell posts P7.8-B income

PILIPINAS Shell Petroleum Corp. posted a net income of P7.8 billion in the first semester, the oil firm disclosed on Wednesday, without giving a comparative figure for the previous year.

“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,” Lorelie Q. Osial, its president and chief executive officer, said in a statement on Wednesday.

The company said its profit for the period would enable it to declare a dividend of P1 per share payable this September, or what it calls an “industry-leading” 5.6% dividend yield.

“This reflects our strong culture of sustained performance even in the midst of a prolonged volatile business environment,” Ms. Osial said.

Pilipinas Shell previously reported a net income of P2.2 billion in the first half of 2021. It has yet to disclose quarterly financial figures.

In the first half of the year, the company said that excluding movement in working capital, the company ended with a cash flow from operations of P13.7 billion compared with P7.6 billion in the same period last year.

It said that business-to-business (B2B) volume increased across all sectors in the first semester.

Aviation fuel sales improved with a 49% increase due to the continued increase in travel and the opening of international and domestic borders.

Commercial fuels increased volume sales by 5% due to a reliable supply of fuels, as well as spot sales in power, and other fuel oil customers.

Lubricants also saw a 5% volume increase while increasing premium sales volume two-fold across product categories.

The company’s offerings for the construction and road segment grew by 8% primarily through its premium products.

Meanwhile, Pilipinas Shell announced that its board of directors had approved an amendment to its articles of incorporation to include retail trade and to change its corporate name.

The company proposed to change its name from to Shell Pilipinas Corp.

It said the move introduces a “wider future-forward approach” towards energy transition that will reposition the company “beyond petroleum, shifting towards sustainable and cleaner energy solutions for the company, people, community and environment.”

The proposed amendment to its secondary purposes to include retail trade comes as the company targets to grow its non-fuel retail segment.

On Wednesday, shares in the company surged 6.44% or P1.14 to finish at P18.84 apiece. — Ashley Erika O. Jose

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