May 14,
2020 | 12:01 am
PILIPINAS
Shell Petroleum Corp. posted a P5.55-billion net loss in the first quarter as
the coronavirus disease 2019 (COVID-19) pandemic led to a collapse in global
oil prices, along with falling oil demand.
In a
disclosure to the stock exchange, Wednesday, the local unit of Royal Dutch
Shell reported a reversal of the P2.33-billion income it registered in the same
quarter in 2019.
“Our
first-quarter loss is disappointing given our robust overall performance last
year and the strong marketing delivery from the start of 2020 up until
mid-March,” Pilipinas Shell President and Chief Executive Officer Cesar G.
Romero said in a statement.
“We have
taken prompt action to reinforce the financial strength and resilience of our
business, leveraging on the flexibility of our supply chain and prudent balance
sheet management over the past years,” he added.
The
listed oil company has doubled its operating expense savings target this year
to P1 billion from P500 million in March, coming from various cash preservation
initiatives.
Pilipinas
Shell has cut its capital expenditure this year by 25% to over P1 billion,
while its employees will no longer receive discretionary performance-related
bonuses.
Its
marketing volumes declined by 36% in the second half of March after the
government imposed an enhanced community quarantine (ECQ) in Luzon. This is
despite increasing them by 6% before the lockdown period.
Before
ECQ, the total volumes of its retail business registered flat despite the Taal
Volcano eruption in January. During the lockdown period, it went down over 50%.
Its
non-fuels retailing delivery remained flat in the quarter, compared with a year
ago, after partnering with delivery firms to transport non-fuels retail
products to select areas during the quarantine period.
The
increased premium penetration in lubricants by 8% also contributed to this,
after a “strong” execution of its Women’s Month promotions and sales from its
new range of products.
No comments:
Post a Comment