Pilipinas Shell Petroleum Corporation (PSPC) posted a net income of Php1 billion for the first quarter of 2021, rebounding from its Php5.5 billion loss it had in the same period last year due to its new supply chain strategy, higher premium penetration across all segments, and continued cash conservation measures.
PSPC also reported Php3.6 billion in cash flow from operations excluding movement in working capital, while its borrowings remained at a manageable level.
“The difficult decision to transform our refinery into world-class import facility allowed us to avoid the significant losses we incurred during the first half of 2020. We have yet to see fuel demand to go back to pre-pandemic levels,” PSPC President and CEO Cesar Romero said in a statement.
PSPC, the country’s second largest oil firm, closed its refinery in Tabangao, Batangas City in August 2020, as it was deemed unprofitable to operate. It is now in the process of transforming the former refinery into a world-class oil import facility.
Meanwhile, the company’s volume delivery still remains below pre-pandemic levels due to the surge in COVID-19 cases and stricter quarantine measures in the NCR-plus bubble.
The total volume in the first quarter dropped 31% year-on-year, while marketing volume also dropped by 16%. However, Lubricants and Bitumen increased by 12% and 27% compared to last year, respectively.
“With our refocused and reset strategy, we are well-positioned to meet the country’s energy requirement as the economy recovers from the pandemic,” Romero said.