C01789-2018

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)
Mar 19, 2018
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 St Salcedo Village Brgy 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 Shares 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 ends 2017 with a 39% leap in net income
Background/Description of the Disclosure

Pilipinas Shell’s year-on-year earnings surged 39% to close 2017 with a net income after tax of P10.4 billion despite more aggressive competition and notwithstanding the two-and-a-half-month planned preventive maintenance shutdown of its Tabangao Refinery. Robust earnings were driven by: strong retail volume growth enabled by continued network expansion and sustained uptake of Shell’s world-class V-Power fuels, strong regional refining margins, and inventory holding gains.

Return on average capital employed hit 27%, demonstrating Pilipinas Shell’s ability to effectively utilize capital to generate superior returns.

Retail sales volume grew by 4% underpinned by high premium fuel penetration at 27%. V-Power Diesel and V-Power Gasoline uptake grew by 17% and 7%, respectively, owing to the successful introduction of V-Power with the breakthrough DYNAFLEX technology. Committed to expanding its retail network in strategic locations, Pilipinas Shell opened 66 new retail stations in 2017, closing the year with a total of 1,044 retail stations. Pilipinas Shell remains committed to maintain a highly efficient retail network, with the ethos of disciplined expansion, capital allocation, and focus on industry-leading returns and dividend yields.

Non-fuels retail business grew by 15% as convenience retail continues to enjoy high double-digit growth. In 2017, Pilipinas Shell opened 37 Shell Select and 22 Deli2Go stores. The retail lubricants business also grew as 35 lube bays were opened in 2017. By the end of 2017, Pilipinas Shell has 102 Shell Select, 41 Deli2Go stores, and 262 lube bays further boosting the non-fuels retail business.

Pilipinas Shell’s commercial business posted higher sales volume versus prior year, overcoming the challenges from the structural decline in power sector demand while sales to other sectors augmented. The aviation segment saw volume growth as Pilipinas Shell started to supply aviation fuels at Mactan-Cebu International Airport while winning deals throughout the year.

The completion of the preventive maintenance in the Tabangao Refinery and freight optimization through the North Mindanao Import Facility (NMIF) further strengthened Pilipinas Shell’s integrated supply chain. Tabangao Refinery’s continued operations after the maintenance shutdown captured the strong refining margins in the region while the NMIF contributed savings of more than 50% above initial estimates.
“Pilipinas Shell delivered P10.4 billion in net income and generated P10.7 billion of cash from operations in 2017, 39% and 26% higher than the prior year. This is a testament to the company’s commitment and continuing focus towards robust cash generation at optimal returns. This should allow us to sustain our commitment to high dividend payout at industry-leading dividend yields” said Cesar Romero, Pilipinas Shell President and Chief Executive Officer.

“We are proud to reward our shareholders with a P5.14 dividend per share. This represents a superior dividend yield of close to 9% based on the share price at the time of our dividend announcement, making SHLPH one of the highest dividend yielding stocks listed on the PSE. We see this as an attestation of our drive and aspiration to be valued as a world-class, and strategic long-term investment opportunity,” he added.
Other Relevant Information

N/A
Filed on behalf by:
Name Angelica Castillo
Designation Corporate Controller & Investors Relations Manager