PILIPINAS Shell Petroleum Corp. on Monday reported P5.44 billion in net income for the first half of the year, up 30 percent from the P4.19 billion posted in the same period a year ago.
Of the amount, second-quarter earnings stood at P3.12 billion, higher than the P1.29 billion recorded a year ago.
Sales stood at P104 billion at end-June, up 26.6 percent from the P82.24 billion posted in the same period last year, primarily due to higher product prices driven by the general increase in average global oil prices.
The company also attributed its strong performance to higher earnings of its marketing businesses and inventory holding gains from its manufacturing and supply chain segments. At end-June this year Pilipinas Shell had 1,054 retail stations all over the country. It opened 16 retail stations this year and is on track to build a total of 50 to 70 new sites by the end of 2018.
Despite the increase in retail pump prices due to rising global oil prices and higher excise taxes, the company said sustained high V-Power penetration at 27 percent.
Nonfuels retail also continued to enjoy double-digit growth during the period. With 19 new Select stores, 10 deli2go stores and 26 lube bays in the first half of the year, Shell said the business is poised to capture the growth in convenience retailing.
In the commercial segment, Shell posted strong volume growth in aviation, lubricants and bitumen.
“Amidst challenges from the lower refining margin environment in the first half of the year, we continue to create value for all our stakeholders by being an integrated fuel and refining company. Our world-class marketing businesses backed by our efficient supply chain and supported by technical and trading capabilities from the Shell Group have allowed us to remain competitive in this challenging business environment,” Pilipinas Shell President Cesar Romero said.