Pilipinas Shell Petroleum Corporation (PSPC) said that it looks forward to higher earnings this year with the economy slowly opening up.
At the firm’s virtual annual stockholders meeting on Monday, PSPC President and CEO Cesar Romero cited that the company’s financial performance is strongly correlated to that of the country’s economy.
Shell, the country’s second largest oil firm, posted a Php16.2 billion net loss in 2020 due to the closure of the Tabangao refinery in August and the economic slowdown caused by the COVID-19 pandemic.
Romero added that the pandemic continues to impact their business due to slower demand and increase in COVID-19 cases, which led them to restrict logistics in stations where quarantine is imposed.
PSPC Chief Financial Officer Reynaldo Abilo said that the firm aspires to grow its earnings in line or at least higher than the projected gross domestic product growth rates. He added, however, that would only happen if the government’s anti-coronavirus measures become successful.
Despite the setbacks, the company expects to register savings of around Php700 million in 2021 and an additional Php300 million in 2023 once the former Tabangao refinery is successfully converted into a world-class import facility. The Tabangao property is currently being used for solar facilities and was set to host battery energy storage systems.
Shell recently named former Bangko Sentral ng Pilipinas Gov. Amando Tetangco, Jr. as one of its independent directors. He joins business heavyweights in the same role, most prominent of which is AC Energy ChairmanFernando Zobel De Ayala.