C03064-2017

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
May 16, 2017
2. SEC Identification Number
14829
3. BIR Tax Identification No.
000-164-757
4. Exact name of issuer as specified in its charter
PILIPINAS SHELL PETROLEUM CORPORATION
5. Province, country or other jurisdiction of incorporation
Philippines
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
Shell House, 156 Valero Street, Salcedo Village, Barangay Bel-Air, Makati City Postal Code 1227
8. Issuer's telephone number, including area code
(+632) 4994001
9. Former name or former address, if changed since last report
N/A
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common Stock 1,613,444,202
11. Indicate the item numbers reported herein
1

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

Pilipinas Shell Petroleum CorporationSHLPH

PSE Disclosure Form 4-31 - Press Release References: SRC Rule 17 (SEC Form 17-C)
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

Pilipinas Shell Q1 earnings up by 27%, delivering P2.89 billion.
Background/Description of the Disclosure

Pilipinas Shell Q1 2017 earnings rose by 27%, closing the quarter at P2.89 billion, up from P2.27 billion in Q1 2016. The higher earnings were primarily driven by retail sales volume growth, higher premium fuel penetration, and strong refinery performance. Inventory holding gains more than offset the impact of lower commercial sales volumes.

Always aiming to provide motorists with smarter products for clean and efficient transport, Retail fuel sales volumes grew by 2% versus the same quarter last year as a result of competitive marketing campaigns and contributions from new retail sites while sustaining growth from the company’s V-Power line-up of premium performance fuels. The company’s non-fuel retailing business exhibited double digit growth compared to same quarter last year, with Shell Select and lube bay offerings specifically exhibiting triple digit growth. For the quarter, Pilipinas Shell opened a total of 16 Shell Select, 6 Deli2Go and 17 Shell Helix Oil Change+ outlets across the country.

Net income growth was also supported by the strong performance of its Tabangao refinery due to high plant reliability that allowed the company to capture the full benefit of higher refining margins during the period. Driving efficiency through smarter infrastructure, the new North Mindanao Import Facility (NMIF) in Cagayan de Oro is delivering the logistics cost savings that enables Shell fuels to remain competitive in the region.

Pilipinas Shell maintained the robustness of its balance sheet with a gearing ratio of 23%, reduced from 27% in Q1 2016, highlighting the company’s ability to generate strong cash flows. Return on Average Capital Employed (ROACE) increased to 8.3% in Q1 2017 from 7.7% the same quarter last year.

Last April 2017, Pilipinas Shell declared a cash dividend of P1.65 per share based on 2nd half 2016 earnings, resulting in a total payout of approximately P2.7 billion. In August last year, P3.3 billion was paid out as interim dividend based on 1st half 2016 audited results. The total dividend payout attributable to 2016 earnings amounts to P5.96 billion which translates to 80.1% dividend payout ratio.

Looking forward, in the face of climate change, continued population growth and the challenge to satisfy the increasing clamor for clean energy, Pilipinas Shell President and
CEO, Cesar G. Romero says: “We at Pilipinas Shell are directly responding by investing in energy efficiency, emissions reduction, and leak prevention. We continue to operate responsibly, live by our principles, and contribute to wider public dialogue and synergies for better energy and climate policies.”

About Pilipinas Shell :

Pilipinas Shell Petroleum Corporation (PSPC) is involved in the manufacture, marketing, supply and distribution of oil products—serving customers in almost every field of transport, commerce and industry with its wide range of high quality fuels, lubricants, liquefied petroleum gas, aviation fuel, bitumen and other specialty products. Pilipinas Shell commenced operations of its first crude distiller in Tabangao, Batangas in 1962 (now a refinery). Its Refinery in Batangas has a rated capacity of 110-thousand-barrels-per-day, including 22 oil distribution terminals/depots, 10 lubricants warehouses, 2 bitumen import facilities across the country and close to a 1,000 retail service stations nationwide.
Other Relevant Information

NA
Filed on behalf by:
Name Angelica Castillo
Designation Corporate Controller & Investors Relations Manager