PILIPINAS Shell Petroleum Corp. on Tuesday reported a 19.7-percent drop in earnings in the first quarter of the year to P2.32 billion, from P2.89 billion, mainly on account of higher expenses.
The company recorded revenues of P49.7 billion at end-March this year, up 18 percent, from P41.97 billion in the same period a year ago. However, expenses ballooned to P45.95 billion, more than 22 percent, from the P37.5 billion recorded in the same period a year ago.
“While softer regional refining margins during the quarter contributed to the roughly 20-percent decrease in overall earnings, Pilipinas Shell’s marketing business increased profitably by 13 percent,” the company said.
It added first-quarter earnings translated to an industry-leading return on capital of 27 percent. In retail, sales volume was sustained.
Shell added four new stations from January to March this year, ending the quarter with 1,047 retail sites.
The oil firm said it will continue to focus on effectively utilizing capital to generate superior returns.
“Shell’s performance in the first quarter demonstrates the strength of our brand. Amid the challenges brought by higher excise taxes, customers continue to patronize our products,” company President Cesar Romero said.
The oil firm also reported it continues to reap benefits from the North Mindanao import facility, where it saw a steady increase in supply reliability in the Visayas and Mindanao regions and sustained supply-cost savings.
Its Tabangao refinery also posted higher reliability, building sufficient stocks in preparation for the scheduled maintenance in May.