Pilipinas Shell starts 2022 with P3.5 billion net income in Q1
May 12, 2022
Pilipinas Shell Petroleum Corporation delivers P3.5 billion net income in Q1 2022 that places it well on track with its five-year plan. The energy company maintains a high fuel premium penetration of 29%, sustaining the strong position of its Shell V-power brand as the most preferred fuel brand in the country.
Cash conservation measures remain a priority for Pilipinas Shell particularly with increasing global oil prices. For the first quarter, it delivers positive cash flow from operations at Php0.1 billion, and cash flow from operations excluding working capital at Php5.9 billion. Borrowing levels remain controlled despite the increase in working capital requirements driven by a significant build-up in inventory cost.
“Pilipinas Shell remains steadfast and committed to our strategy of powering progress for the country, especially as opportunities are opening with a recovering economy,” says Lorelie Quiambao-Osial, the energy company’s President and Chief Executive Officer. “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,” Osial added.
Fuel performance recovery starting with B2B
Amidst the significant increase in global oil prices caused by the Russia-Ukraine war and heightened mobility restrictions due to the Omicron variant in the first quarter, Pilipinas Shell continues to provide its customers with premium products, superior technical services, and tailor-fit value propositions. It provided a reliable supply of fuels for its sector customers across the country despite industry supply chain pressures.
The Company's lubricants business saw a 12% volume increase while premium sales volume rose by 24% despite the pandemic.
Aviation sales volume bounced back in 2022 at 74% growth compared to the previous year, as domestic and international borders open both for passenger and cargo flights.
Pilipinas Shell intends to accelerate its strategies throughout this year by growing and continuing to invest in and responding to the growing energy needs of the Philippines.
Enhancing customer experience in-store
Pilipinas Shell’s expanding non-fuel retail products and services are transforming consumers’ experience of its fuel stations as mobility destinations. The Company’s non-fuel retail gross margin in the first quarter of 2022 is up 27% compared to the prior year, and its highest quarter performance delivery since 2016. In total, there are now 191 Shell Select stores, 223 Select Express sites, 78 Deli2Gos, and 456 Lube bays nationwide that serve the rapidly evolving mobility and purchasing behavior of the public.
Shell Go+, the Company’s dedicated loyalty program and mobile application, is continuously expanding, reaching the current 1.3M-strong membership. Pilipinas Shell continues to enhance customer experience satisfaction with the app, and integrated offers for both its fuels and non-fuel offerings that is made accessible online.
Industry leadership in focus sectors
The first quarter of 2022 also delivered results for Pilipinas Shell as an energy provider and leader for the more than 7,100 islands of the country. Its B2B campaigns and initiatives have successfully won and/or renewed contracts in the power, marine, construction, and industrial sectors.
The Company marks another milestone in 2022 with the groundbreaking of its 4th world-class MR (Medium Range vessel) capable Import Terminal in Bgy. Darong, Sta Cruz, Davao last April. This facility will strengthen the existing value chain as well as support the growing energy needs in Southern Mindanao area. The terminal also enhances the company’s responsiveness and reliability during typhoons and natural calamities. The Company’s three other import terminals are located in Batangas, Cagayan de Oro, and Subic.
This year, the energy company will advance its sustainability agenda by continuing to drive its businesses to help contribute to the reduction of its carbon footprint while promoting its lower carbon products and offerings. Its biggest asset, the import terminal in Batangas, uses 100% renewable energy which translates to 2.6KT equivalent of CO2 decrease in the first quarter. Shell Bitumen was used in paving the recently inaugurated Cebu-Cordova Link Expressway, now the longest bridge in the country, which connects Cebu City to Mactan Island.
Pilipinas Shell is listed as 3rd, and the only energy company, among LinkedIn’s top 15 companies to work for in the Philippines in 2022. The professional social media network based this selection on the following criteria: skills growth, company stability, external opportunities, company affinity, gender diversity, and educational background.
“Nation-building through the delivery of high-quality reliable energy to every part of the Philippines is among our core pillars,” said Quiambao-Osial, “and all our stakeholders, including the government, our partners, and the public can rely on our commitment to power progress together. We are here to stay.”
Media Pilipinas Shell: email@example.com
The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this press release, “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to 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 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 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 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’’, “milestones”, ‘‘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 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, judicial, 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 Shell plc’s Form 20-F for the year ended December 31, 2020 (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, 28 March 2022. Neither 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.
The content of websites referred to in this press release does not form part of 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.
You may also be interested in
Shell launched its #MakeTheFuture campaign with an event designed for kids at the Mind Museum in Bonifacio Global City Taguig.
Taal Volcano Eruption
Philippine Institute of Volcanology and Sesimology (PHIVOLCS) raised the Taal Volcano Alert Signal to Level 4 - Hazardous eruption is possible within days last January 12.