By Myrna M. Velasco

Listed firm Pilipinas Shell Petroleum Corporation’s net income had been on 30 percent uptrend in January-June this year to P5.46 billion from P4.2 billion for the same period in 2017.

The company said its stronger performance in this year’s review period is primarily attributed “to the higher earnings of its marketing businesses and inventory holding gains from manufacturing and supply chain segments.”

On maximizing cash engine being a priority for the oil firm, it yielded competitive returns. In the first half, it posted cash from operations at P7.1 billion, with the return on average capital increasing to 30 percent versus the prior year’s 22 percent.

Shell Philippines President and Chief Executive Officer Cesar G. Romero noted that “amidst challenges from the lower refining margin in the first half of the year, we continue to create value for our stakeholders by being an integrated fuel and refining company.”

He added the company’s efficient supply chain underpinned by technical and trading capabilities, “have allowed us to remain competitive in this challenging business environment.”

Against the backdrop of rising global prices, Pilipinas Shell indicated that its flagship V-Power fuel had been continually logging robust sales, with about 27 percent penetration level.

The company said its non-fuels business segment had likewise been on “double-digit growth.” Its investment expansion trajectory enabled it to beef up its Select stores with 19 more outlets, 10 deli2go stores and 26 lube bays within this year’s six months.

“The business is poised to capture the growth in convenience retailing,” the company stressed.

Within the period, the oil firm added 16 more gasoline stations at its retail portfolio, on track for its targeted build up of additional 50-70 new sites until the end of 2018. Pilipinas Shell presently has 1,054 retail stations nationwide.

The company similarly emphasized that it was able to sustain its strong selling points to both commercial and industrial end-users. “In the commercial segment, Pilipinas Shell posted strong volume growth in aviation, lubricants and bitumen,” adding that its bitumen plant which is currently the only one in the country at this point, already commenced commercial operations “and ready to support the government’s infrastructure projects.” (MMV)