PILIPINAS Shell posted P10.4 billion in net income last year, up 39 percent versus a year ago, mainly on account of strong retail volume.
“Robust earnings were driven by strong retail volume growth enabled by continued network expansion and sustained uptake of Shell’s world-class V-Power fuels, strong regional refining margins and inventory holding gains,” the company said.
Retail sales volume grew by 4 percent mainly due to high premium fuel penetration at 27 percent. V-Power Diesel and V-Power Gasoline uptake grew by 17 percent and 7 percent, respectively, owing to the successful introduction of V-Power.
Pilipinas Shell opened 66 new retail stations in 2017, closing the year with a total of 1,044 retail stations.
Nonfuels retail business grew by 15 percent, as convenience retail continues to enjoy high double-digit growth.
In 2017 the oil firm opened 37 Shell Select and 22 Deli2Go stores.
The retail lubricants business also grew as 35 lube bays were opened in 2017. By the end of 2017, it has 102 Shell Select, 41 Deli2Go stores, and 262 lube bays further boosting the nonfuels retail business.
The completion of the preventive maintenance in the Tabangao Refinery and freight optimization through the North Mindanao Import Facility (NMIF) further strengthened Pilipinas Shell’s integrated supply chain, it added.
Tabangao Refinery’s continued operations after the maintenance shutdown captured the strong refining margins in the region, while the NMIF contributed savings of more than 50 percent above initial estimates.
“Pilipinas Shell delivered P10.4 billion in net income and generated P10.7 billion of cash from operations in 2017, 39 percent and 26 percent higher than the prior year. This is a testament to the company’s commitment and continuing focus toward robust cash generation at optimal returns. This should allow us to sustain our commitment to high dividend payout at industry-leading dividend yields, according to Pilipinas Shell President and CEO Cesar Romero.
“We are proud to reward our shareholders with a P5.14 dividend per share,” he added. “This represents a superior dividend yield of close to 9 percent based on the share price at the time of our dividend announcement, making SHLPH one of the highest dividend yielding stocks listed on the PSE [Philippine Stock Exchange].”
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