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 Shares
1,613,444,202
11. Indicate the item numbers reported herein
Item 9
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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 1st half 2017 profits hit P 4.2 billion
Background/Description of the Disclosure
Pilipinas Shell Petroleum Corporation (“SHLPH”) delivered strong earnings of PHP 4.2 billion despite the planned refinery preventive maintenance shutdown during the last two months of the second quarter and lower inventory holding gains from softer global oil prices.
Retail network sales volumes grew by approximately 6% in Q2 2017 as against the same period last year following the successful Summer Charged promo and the launch of the company’s new V-Power performance and efficiency fuels with DYNAFLEX technology on 8 June. The company proudly inaugurated its 1000th retail site in May staying true to its network expansion plans.
The Non-Fuels Retailing business grew versus last year with Convenience Retailing showing double digit growth compared to prior quarter due to new Deli2Go® shops and newly renovated Shell Select stores. During the first half of 2017, the company opened 20 Shell Select stores and 9 new Deli2Go® shops including its first stand-alone Deli2Go® outlet, demonstrating its continuing belief in the growth prospects of the QSR sector in the country. The co-locator business also saw high double digit growth brought about by 20 new co-locators sites and higher co-locator sales. To-date, the company also opened a total of 17 lube bays to support the growth of the lubes business in its retail network.
Commercial volumes rebounded in Q2, up 8% from last quarter, driven by offtakes from new fuels supply contracts as well as aggressive B2B growth. In June, the company officially launched the entry of its aviation fuels business at Mactan Cebu International Airport, expanding its supply envelope to cover the country’s three busiest airports: Manila (MNL), Clark (CRK) and Cebu (CEB).
The solid operational performance and reliability of the Tabangao refinery from January to April plus strong refining margins during the period mitigated the impact of the planned preventive maintenance shutdown in the succeeding two months. The safe and successful completion of the preventive maintenance program on the Tabangao refinery combined with better freight optimization via the North Mindanao Import Facility in Cagayan de Oro brings added robustness to the company’s integrated supply chain and assures the reliable supply of quality fuel products to its customers. Inventory holding gains at the end of 1st half 2017 were roughly 20% of last year’s levels.
The company also welcomed the finality of the Supreme Court’s 19 June 2017 decision ruling in its favor on the 1996 abandonment case with the Bureau of Customs.
Operational cash flows during 1st half 2017 were 26% higher than same period last year and already at 92% of full year 2016. Gearing reduced to 22% and Return on Average Capital Employed was at 13%.
“Sustainability underpins our growth as a company” says Cesar Romero, Pilipinas Shell President and CEO. “But being a responsible company entails more than just the economic, social and environmental legs of sustainability. It also implies good corporate governance and empowerment of staff. At Pilipinas Shell we nurture talent. And I am very proud to see that Filipino talent – Shell employees and business partners – bagged the top awards at the recent Shell Global Retail recognition awards in New York. Such is proof that our capability to grow the business in the Philippines is world-class!”
Pilipinas Shell Petroleum CorporationSHLPH