C05768-2020

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)
Aug 12, 2020
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
Taguig City, Metro Manila, Philippines
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
41st Floor, The Finance Center, 26th Street corner 9th Avenue Bonifacio Global City, Brgy. Fort Bonifacio Taguig City, Metro Manila Postal Code 1635
8. Issuer's telephone number, including area code
(632) 3 499 4001
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 - Other Events

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 4-30 - Material Information/Transactions References: SRC Rule 17 (SEC Form 17-C) and
Sections 4.1 and 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

Pilipinas Shell Strengthens Financial Position to Weather COVID-19 Storm and Board Actions
Background/Description of the Disclosure

Pilipinas Shell Petroleum Corporation (the “Corporation”) is making strategic choices to secure the long-term sustainability of its business and thrive in both the ongoing energy transition and the new normal created by the COVID-19 pandemic.

With the price of fuel products lower than or almost equal to the cost of refining crude oil, the Corporation is permanently shutting down its refinery operations in Tabangao and transforming the facility into a world-class full import terminal to optimize its asset portfolio and enhance its cost and supply chain competitiveness.

“We have the technical capability and financial flexibility to manage and adapt to disruptive conditions. Due to the impact of the COVID-19 pandemic on the global, regional and local economies, and the oil supply-demand imbalance in the region, it is no longer economically viable for us to run the refinery,” says President and Chief Executive Officer Cesar Romero.

The shift in supply chain strategy from manufacturing to full import, is a move that will further strengthen the Corporation’s financial resilience amidst the significant changes and challenges in the global refining industry and the change to the new normal brought about by the COVID-19 pandemic. It also prepares the Corporation for a future that will rely on more and cleaner energy solutions.

The Corporation is in fighting form as it goes deeper into the second half of the year, narrowing its quarter-on-quarter net loss from P5.5 billion in the first quarter to P1.2 billion in the second quarter, as crude oil and product prices slightly improved and stabilized during the second quarter. Net loss booked as of end of June totaled P6.7 billion.

Despite seeing volume and earnings recovery in the months of May and June, the Corporation remains cautious given the spike of COVID-infected cases in the country and the consequent decision to place Metro Manila, Bulacan, Cavite, Laguna, and Rizal under modified enhanced community quarantine (MECQ) again.

To ensure the Corporation remains financially resilient, and to preserve cash, the Board of Directors of the Corporation has also decided to cancel 2020 dividend payouts for 2019 financial results.

“We are committed to make the right sustainable decisions now to protect our shareholders for the long-term,” says Romero.

Please refer to attached 17-C for full disclosure including board actions taken.
Other Relevant Information

Please refer to attached 17-C for full disclosure including board actions taken.
Filed on behalf by:
Name Erwin Orocio
Designation Managing Counsel/Corporate Secretary