Despite challenging times, Pilipinas Shell Petroleum Corp. (PSPC) said the country is “still an appealing market” for investors.
PSPC Chairman Min Yih Tan said during the company’s virtual stockholders’ meeting that the Philippines continues to maintain robust macroeconomics and attractive demographics. This, he added, puts the country in a good position to survive and recover from the crisis.
“As one of the more robust economies in the region, Philippines grew by 5.9 percent in 2019. This was accompanied by the energy demand in the industrial, commercial and domestic sectors. Together with the low motorization rate compared to other countries and attractive demographics, Philippines is an appealing market to invest and grow,” he said.
The publicly-listed oil company has put in place “recovery” strategies across its businesses after posting a P5.5-billion in net loss in the first quarter.
“Although Pilipinas Shell’s first quarter result this year was impacted, our recovery strategy are in place for all lines of business. Coupled with our strong track record, Pilipinas Shell is poised to seize opportunities and positioned for success. We are in a robust standing not only to deal with market volatility but also are ready to support the country’s growth as it enters the new normal,” he added.
During the first three months of the year, PSPC had to deal with plummeting oil prices resulting from the price war between Saudi Arabia and Russia; disrupted supply chain and distribution network brought about by the eruption of the Taal volcano; and declining demand brought about by the pandemic.
“The crisis is far from over as the effects of ECQ [Enhanced Community Quarantine] will be probably be more felt in the second quarter,” said PSPC President and CEO Cesar Romero.
‘It is not clear how long recovery will take and what shape or form the new normal will take. What is clear though is we must show leadership and take early and decisive action to stay resilient as a company. One of the key priorities is enhancing our focus on cash management, including our ability to generate revenues, reduce costs, reduce capex [capital expenditure] and manage working capital.”