Pilipinas Shell Petroleum Corp. returned to profitability in the third quarter as sales rose despite the stringent lockdown in August.
In a disclosure, Pilipinas Shell said it posted a P1.14 billion net income in the quarter ending September, a reversal of the P7.13 billion net loss in the same period last year.
Net sales during the third quarter jumped by 24.3% to P42.09 billion compared to P33.86 billion a year ago.
In the first nine months of the year, Pilipinas Shell recorded a P3.37 billion net income, a turnaround from the P13.87 billion net loss it had in the similar period last year.
Net sales for the nine-month period rose 15.2% to P124.32 billion versus P107.89 billion a year ago.
“Our renewed strategy has been proven effective for our business to thrive amidst the resurgence of selected lockdowns in the country. We are continuously growing our capacity for the remainder of 2021, to prepare for the near and medium-term demand pick-up as active new coronavirus disease 2019 (COVID-19) cases decline, vaccination programs accelerate, and travel restrictions ease,” Pilipinas Shell President and Chief Executive Cesar G. Romero said in a statement.
Overall year-to-date marketing volume delivery declined by 6%, but Pilipinas Shell said its premium fuel penetration rose 31%.
The company added that its lubricants business posted a 36% increase in terms of volume as its premium products posted growth and deeper consumer penetration across the country.
“Aviation volumes continue to improve, with volume recovery in the third quarter of over 60% compared to the same period last year, driven by an increase in passenger flights as domestic and international flight restrictions ease,” it said.
Meanwhile, Pilipinas Shell’s non-fuel retail network expansion continues with 156 Shell Select stores, 219 Select Express, 72 Deli2Gos, and 424 Lube bays. Non-fuel retail operating profit increased by 28% for the period.
“The company’s capital expenditure program is on-track, with some P2.2 billion spending, approximately 68% of which is spent on network expansion. 25 new mobility sites were launched from January to September this year. The rest was used for supply chain maintenance and upgrades, in preparation for demand resurgence,” Pilipinas Shell said.
On Friday, shares of Pilipinas Shell rose by 4.78% or P1.05 to end at P23 apiece. — Revin Mikhael D. Ochave