Pilipinas Shell Petroleum Corporation incurred a net loss of Php13.9 billion in the first nine months of the year, a reverse from the Php4.4 billion it earned in the same period last year.
Half of the losses or Php7.5 billion came from one-off charges in relation to the conversion of the company’s Tabangao refinery into an import facility. Excluding the said transaction, net loss would have stood at Php6.4 billion.
Shell permanently closed the refinery located in Batangas City last August with the company deeming it as no longer economically viable. Global market research company Fitch has warned, though, that the closure would increase inflation in local oil prices.
The country’s second-largest oil firm likewise reported Php5.7 billion in inventory valuation losses.
Despite the negative figures, the company managed to save Php2.5 billion at the end of the third quarter, exceeding its yearend cash conservation target of Php2 billion. Php1.3 billion of the savings came from capital expenditure, while Php1.2 billion were generated from operating expenses.
Pilipinas Shell President and CEO Cesar Romero remains optimistic in spite of the figures given the government’s efforts to reopen the economy by prudently easing quarantine restrictions.
“The wins are coming in gradually as more businesses operate at increased capacity in the areas of manufacturing and transportation, to name a few. Our balance sheet, technical capability and resources are solid and serve us well in continuing to provide Filipinos with high-quality fuel products despite the challenging economic environment and to make the right sustainable decisions to protect the long-term interests of our shareholders,” he said in a statement.