PILIPINAS Shell Petroleum Corp. recorded a net profit of P4.19 billion in the first half of the year, down 17.4 percent from P5.07 billion in 2016.
The lower profit was attributed to the planned refinery preventive maintenance shutdown in the last two months of the second quarter and lower inventory holding gains from softer global oil prices.
In a disclosure to the local exchange on Tuesday, the company said the decrease was partially offset by the strong refinery performance in the first quarter of the year, growth from its retail business.
It said retail network sales added about 6 percent in the second quarter from a year ago, which it attributed to its Summer Charged promo and the launch of its V-Power performance and the efficiency fuels with Dynaflex technology last June 8.
Gross profit in the first half decreased 11 percent to P11.85 billion from P13.32 billion in the same period last year.
Net sales in the six months to June 2017 climbed 24.6 percent to P82.2 billion from P66 billion last year on account of higher product prices driven by the increase in average global oil prices and growth from retail sales volume.
Sales volume hit 2,760 million liters in the same period, down 6.4 percent from 2,948 million liters in the previous year.
“The company also welcomed the finality of the Supreme Court’s 19 June 2017 decision ruling in its favor on the 1996 abandonment case with the Bureau of Customs,” Pilipinas Shell said.
“Sustainability underpins our growth as a company,” Pilipinas Shell President and CEO Cesar Romero said.
“But being a responsible company entails more than just the economic, social and environmental legs of sustainability. It also implies good corporate governance and empowerment of staff,” Romero added.
Pilipinas Shell, which unveiled its 1000th retail station along Eton City in Santa Rosa, Laguna last May, is primarily engaged in the refining and marketing of petroleum products.