Pilipinas Shell Petroleum Corp recorded a 105 percent jump in its net profits in 2016, doubling their record from the previous year.
In a disclosure to the Philippine Stock Exchange, Pilipinas Shell said that it ended 2016 with a net income of P7.4 billion brought by robust sales volume and logistics cost reductions.
“The strong financial performance is driven by increased premium fuel penetration, strong retail volume growth, successful marketing campaigns, and logistics cost savings that offset the impact of lower commercial sales volumes and extended refinery downtime,” it said.
In 2015, Shell’s net profits were at P3.6 billion.
Retail sales volume went up by 4 percent with 996 retail stations. The company also said that the growth was due to higher premium fuel penetration that increased to 27 percent.
The bitumen and lubricant business also recorded a double – digit growth. Infrastructure projects in the bitumen business grew while innovated methods, marketing initiatives, and cost management efforts pushed the growth of the lubricant business.
This growth tempered the effect of the slowdown in the oil firm’s commercial business, which faced some challenges in the power sector.
The oil firm also realized significant logistics cost savings with the recent completion of the North Mindanao Import Facility (NMIF) in Cagayan de Oro.
Pilipinas Shell said that they are committed to continuously grow its marketing business through retail, commercial and non – fuel retail sectors with an efficient, safe and reliable manufacturing, supply and distribution chain and driven by strong corporate governance and world class talent development.
In previous reports, Shell country chairman Cesar Romero said that they are putting up 50 to 70 new retail stations this year to boost sales volume growth even with fluctuating oil prices.
40 percent of these will be placed in Luzon, while 60 percent will be located in Visayas and Mindanao.