Pilipinas Shell Petroleum Corp. posted a 91 percent increase in net earnings during the nine-month period on the back of higher marketing margins, lower cost of sales and lower operating costs.
In a disclosure to the Philippine Stock Exchange, the local unit of the Royal Dutch Shell doubled its net income as of end-September to P6.36 billion from P3.33 billion in the same period last year.
This is despite a decline in net sales by 17.3% to P101.14 billion from P122.36 billion last year due to “significantly lower product prices driven by the decrease in global oil prices.”
Sales volume decreased from 4.44 billion liters to 4.38 billion liters because of uncontracted volumes for Power Sector Assets and Liabilities Management Corp. (PSALM).
For its retail segment, sales increased by 4.2% due to differentiated fuel offerings, successful marketing campaigns and the contributions of new-to-industry sites.
Shell said “global developments, particularly the volatility in oil prices, will continue to impact crude oil supply, both internationally and in the domestic market.”
The company debuted in the stock exchange on November 3 and sold a total of 291 million shares, including 16 million secondary shares worth P19.5 billion.