Pilipinas Shell Petroleum Corp.’s (PSPC) net income soared by 245 percent in the first quarter, buoyed by higher sales in January to March, when pump prices rose steadily.
The company told the stock exchange Thursday that net income stood at P3.52 billion at end-March this year from P1.02 billion in the same period a year ago. Net sales increased by 48 percent to P59 billion during the period primarily due to higher pump prices driven by the general increase in global oil prices.
Gross profit went up by 32 percent to P8 billion mainly due to high petroleum fuel penetration and inventory gains as a result of increase in the world oil market.
EBITDA, or earnings before interest, taxes, depreciation, and amortization went up by 62.9 percent to P6.2 billion at end-March mainly due to the impact of post-tax inventory holding gains.
Core earnings, however, fell by 48 percent to P528 million, mainly driven by weaker marketing volumes from new government-imposed mobility restrictions to combat the Omicron surge at the beginning of the year, and price exposures borne by marketing businesses due to increasing product prices.
“Pilipinas Shell remains steadfast and committed to our strategy of powering progress for the country, as opportunities are opening with a recovering economy,” said Lorelie Quiambao-Osial, PSPC president and CEO.
“Customer-centricity, innovation, agility, and our initiatives for sustainable energy are all designed to meet our expanding customers’ current and future needs with the resurgence of safe mobility.”
Cash conservation measures remain a priority for the oil firm particularly with increasing global oil prices. Borrowing levels remain controlled despite the increase in working capital requirements driven by a significant build-up in inventory cost.
The oil firm maintains a high fuel premium penetration of 29 percent, sustaining the strong position of its Shell V-power brand as the most preferred fuel brand in the country.
PSPC is the country’s second-largest oil company with over 1,100 retail stations nationwide. It plans to put up 40 to 60 stations this year.
Company officials said last week that PSPC has programmed P3 billion to P4 billion in capital expenditure this year.
“Sixty percent of this will be dedicated on the expansion of mobility footprint, while the other 40 percent will be dedicated to further strengthening our supply chain network,” said PSPC Vice President for Finance Rey Abilo.
Osial said the company’s current and future marketing plans that are intended to bring growth include building structural additions over the next three years in Shell’s three medium-range-capable import terminals in Batangas, Cagayan de Oro, and Subic.