Pilipinas Shell Petroleum Corporation, the country’s second-largest oil firm, posted a Php1.2 billion profit in the second quarter, a reversal from Php1.12 billion loss in the same period last year, based on its disclosure to the Philippine Stock Exchange on Friday.
Shell also said in the disclosure that it registered a Php2.2 billion profit in the first half, a huge turnaround from its Php6.7 billion loss year-on-year.
Shell attributed the improvements in its financials to changes in its supply chain strategy. Among these is the conversion of its old Tabangao refinery in Batangas City into an import facility.
“We’re seeing a significant rebound from our P6.7 billion loss in the same period last year. It validates our bold decision to transform the way we do business amidst uncertain conditions resulting from the COVID-19 pandemic,” Pilipinas Shell President and CEO Cesar Romero said in a statement.
The Shell Import Facility Tabangao (SHIFT), which opened on June 30, will particularly address fuel demands for customers in Metro Manila, Southern Luzon, and Northern Visayas. Shell closed Tabangao as a refinery in August 2020 due to unprofitability.
Aside from supply chain strategy changes, Shell also said that its strong marketing performance contributed to its financial strength and business resilience.
Shell posted a Php1 billion increase in net income in the first quarter. Romero also said back in April that the company is investing Php20 billion within the next five years in preparation for increasing domestic demand alongside economic recovery from the pandemic.