“We’re seeing a significant rebound from our P6.7 billion loss in the same period last year. It validates our bold decision to transform the way we do business amidst uncertain conditions resulting from the Covid-19 pandemic,” says Pilipinas Shell President and CEO Cesar Romero.

The company inaugurated the Shell Import Facility Tabangao (SHIFT) last June 30, marking the transformation of its refinery into a world-class import terminal that will meet fuel demand in Metro Manila, Southern Luzon and Northern Visayas. “This SHIFT means stronger supply reliability, greater operational efficiency, and improved overall logistics performance,” adds Romero.

Pilipinas Shell attributes its strong showing for the first six months not only to supply chain strategy but also to its strong marketing performance, all the while ensuring the financial strength and resilience of its business via a strong balance sheet and prudent cost and capex management.

Accelerated strategies

Romero admits that while the pandemic continues to pose challenges to the country’s economic recovery, it does not preclude growth. “We intend to continue to be the preferred energy partner for the industries that we serve, and the country itself, to thrive in a better normal,” he says.

True to this thrust, Pilipinas Shell sustained support for road construction projects, effectively increasing sales of bitumen products by 45 percent in 1H21 compared to figures in the same period of 16,000 tons only. Shell Instapave, with its innovative quick-application technology, was used for road repairs in North Luzon and residential builds in Visayas. Shell Bitufreshair was used for infrastructure projects all over the country, enhancing the air quality for motorists and passengers.

Mobility stations also remain open to facilitate the transportation of goods and critical services despite the imposition of tighter restrictions on mobility due to the increasing number of locally-transmitted cases of the Covid Delta variant. “All our businesses will continue to meet our customers’ essential needs, following government health and safety protocols,” adds Romero.

Customer centricity

First half marketing volume delivery remains flat against previous years due to travel restrictions brought about by Covid with pockets of restrictions in Manila, Visayas and Mindanao. But marketing volume in the second quarter grew by 18 percent in 2021, with the biggest contribution coming from Mobility which posted gains of 29 percent. The increase stems from innovative marketing initiatives that focus on the consumer’s fuel and non-fuel needs and use digital means to improve customer engagement and perception.

These initiatives include the opening of the country’s first Art Gallery-themed mobility station in Cebu and the offering of perks exclusive to Shell GO+ members, who now number half a million. The first half of 2021 also saw the opening of 15 mobility sites. By the end of June, non-fuel network stands at 153 Shell Select stores, 235 Select Express, 70 Deli2Gos, 415 Lube bays and 353 Shell Helix Centers.

Strong volume and profit performance were also seen in the lubricants business, with premium products growth and deeper consumer penetration nationwide seen as key levers. The introduction of the Coolant Longlife Plus product line in the second quarter is expected to drive further growth for the segment.

Other wins

Last May, Pilipinas Shell inaugurated an eco-brick hub, the first not only in the country, but also for the Royal Dutch Shell Group. This facility, set up to supply upcycled plastic ‘eco-bricks’ for the construction of Shell mobility sites and Shell Select buildings, helps initiate a circular economy that reduces the plastics reaching landfills, and generates commercial value out of what was once considered waste.

The company is also recognized by industry peers in the region. Pilipinas Shell competed against leading organizations across 29 countries in the Asia Pacific Stevie Awards and won its first gold for Innovations in Investor Relations. The company also won four silver awards, two of which were for COVID-19 response (Most Exemplary Employer and Most Valuable Corporate Response), while two were for innovations in customer service and public service communications, respectively.

“The Stevie Award serves as a motivation for us to improve our corporate governance and to continue creating shared value for society. Pilipinas Shell is truly a world-class investment case, and winning the Stevie Awards is a testament to the strength of our people and our Company’s know-how, innovative spirit, and most importantly, values,” closes Romero.

For Enquiries:

Cesar Abaricia
Media and IC Manager, Philippines

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this press release “Shell”, “Shell Group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Royal Dutch Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this press release refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

This press release contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this press release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s Form 20-F for the year ended December 31, 2019 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this press release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this press release, August 12, 2021. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this press release.

We may have used certain terms, such as resources, in this press release that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

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