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
1,613,444,202
11. Indicate the item numbers reported herein
Item 9 - Press Release
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 hits industry-leading 27% return on capital and grows operational cash flow by 23% in Q1 2018
Background/Description of the Disclosure
In Q1 2018, Pilipinas Shell sustained delivery of its strategic priorities: (1) maximize cash generation while optimizing shareholder returns; (2) disciplined expansion and capital allocation; and (3) attractive dividend policy.
Pilipinas Shell’s P2.3 billion net earnings at the end of Q1 translates to an industry-leading return on capital of 27% on a trailing 12-month basis, demonstrating the company’s continuing prudent and effective utilization of shareholder capital. Operational cash flows also increased 23% to P3.5 billion year-on-year, mainly driven by total sales volume growth of 4%, higher premium fuel penetration and better working capital management.
While softer regional refining margins during the quarter contributed to the roughly 20% decrease in overall earnings, Pilipinas Shell’s marketing business increased profitability by 13%. In retail, sales volumes were sustained while increasing premium fuel sales, closing the quarter with 27% V-Power penetration. Pilipinas Shell opened 4 new stations, ending the quarter with 1,047 retail sites.
The non-fuels retailing business sustained its double-digit growth closing the quarter with 21% growth. In the first quarter, Pilipinas Shell added 11 new Shell Select stores, 7 new deli2Go offers, and 9 new lube bays.
The Commercial segment’s contribution to net earnings increased in double digits due to more premium grade offerings and strong performance of the lubricants and bitumen business.
We continue to reap the benefits from the North Mindanao Import Facility where we saw steady increase in supply reliability in the Visayas and Mindanao regions and sustained supply cost savings. The Tabangao Refinery also posted higher reliability building sufficient stocks in preparation for the scheduled maintenance in May.
Continuing strong cash generation and prudent deployment of capital provided more than sufficient funding for the superior 80% dividend payout on 2017 earnings.
“Pilipinas Shell’s performance in the first quarter demonstrates the strength of our brand. Amidst the challenges brought by higher excise taxes, customers continue to patronize our products. We even saw an increase in V-Power uptake of 2% vs Q1 2017. We remain pleased with our marketing businesses which continue to demonstrate strong underlying performance both financially, and operationally,” said Cesar Romero, Pilipinas Shell President and Chief Executive Officer.
“Pilipinas Shell continues to focus on effectively utilizing capital to generate superior returns. The Company continues to lead the industry with a return on average capital employed of 27%, from 24% in the previous year.”
Pilipinas Shell Petroleum CorporationSHLPH