The net profit of Pilipinas Shell Petroleum Corp. (PSPC) soared 245% in the first quarter, boosted by higher sales from January to March, when pump prices rose steadily.
The company told the stock market on Thursday that net profit stood at 3.52 billion pesos at the end of March this year, compared to 1.02 billion pesos in the same period a year ago. Net sales increased by 48% to 59 billion pesos during the period, mainly due to higher prices at the pump driven by the general increase in world oil prices.
Gross profit increased by 32% to reach 8 billion pesos, mainly due to the high penetration of petroleum fuels and inventory gains resulting from the increase in the global oil market.
EBITDA, or earnings before interest, tax, depreciation and amortization, rose 62.9% to P6.2 billion at the end of March, mainly due to the impact of post-tax inventory holding gains .
Core profits, however, fell 48% to 528 million pesos, mainly due to lower marketing volumes due to new mobility restrictions imposed by the government to combat the Omicron outbreak at the start of the year. year, and price exposures borne by marketing companies due to increased product prices. .
“Pilipinas Shell remains steadfast and committed to its strategy to drive the country’s progress as opportunities open up with a recovering economy,” said Lorelie Quiambao-Osial, President and CEO of PSPC.
“Customer focus, innovation, agility and our sustainable energy initiatives are all designed to meet the current and future needs of our expanding customers with the resurgence of safe mobility.”
Cash conservation measures remain a priority for the oil company, especially with rising global oil prices. The level of indebtedness remains under control despite the increase in the working capital requirement induced by a significant increase in the cost of inventories.
The oil company maintains a high premium fuel penetration of 29%, supporting the strong position of its Shell V-power brand as the most preferred fuel brand in the country.
PSPC is the second largest oil company in the country with over 1,100 outlets nationwide. It plans to set up 40 to 60 stations this year.
Company officials said last week that PSPC had planned 3 to 4 billion pesos in capital spending this year.
“Sixty percent of this will be dedicated to expanding the mobility footprint, while the remaining 40% will be dedicated to strengthening our supply chain network,” said Rey Abilo, Vice President of PSPC for finance.
Osial said the company’s current and future marketing plans that aim to deliver growth include the construction of structural additions over the next three years at Shell’s three medium-range import terminals in Batangas, Cagayan. of Oro and Subic.