Pilipinas Shell posts P.2.9B net income in Q1, up 27%

Pilipinas Shell Petroleum Corp. posted a net income of P2.89 billion in the first quarter of 2017, up 27 percent from P2.27 billion a year earlier.

In a disclosure on Tuesday, the company attributed its financial results primarily to retail sales volume growth, higher premium fuel penetration and strong refinery performance.

"Inventory holding gains more than offset the impact of lower commercial sales volumes," Pilipinas Shell said.

Revenue stood at P41.644 billion, up 33.2 percent from P31.254 billion a year earlier.

Retail fuel sales volumes grew by 2 percent due to competitive marketing campaigns and contributions from new retail sites while sustaining growth from the company’s V-Power line-up of premium performance fuels, the company said.

In January to March, Pilipinas Shell opened 16 Shell Select, six Deli2Go and 17 Shell Helix Oil Change+ outlets across the country.

"Net income growth was also supported by the strong performance of Tabangao refinery due to high plant reliability that allowed the company to capture the full benefit of higher refining margins during the period," Pilipinas Shell noted.

The new North Mindanao Import Facility in Cagayan de Oro is delivering the logistics cost savings that enables Shell fuels to remain competitive in the region, the company added.

“We at Pilipinas Shell are directly responding by investing in energy efficiency, emissions reduction and leak prevention. We continue to operate responsibly, live by our principles, and contribute to wider public dialogue and synergies for better energy and climate policies," Pilipinas Shell President and CEO Cesar Romero said. — Ted Cordero/VDS, GMA News