Growing beyond fuels as social investments, export potentials take off
Amid the challenges faced by the oil industry in 2018, Pilipinas Shell reported significant milestones during the year and maintained its position as the leading energy and petroleum company in the Philippines.
During its recent stockholders meeting, Pilipinas Shell reported a net income of P5.1 billion for 2018. The company also reported a 29% increase in its cash flow from operations to end the year at P14.1 billion. Pilipinas Shell attributes the increase to the company’s effective working capital management, allowing it to cover capital expenditures and dividend payments.
Operating expenses, on the other hand, increased to Php14.4 billion, 3.8% higher than 2017 due to the continuing growth of the company’s retail network and non-fuels retailing business. Even with the challenges brought about by the TRAIN Law implementation, Pilipinas Shell reported investing P4.1 billion in capital investments in 2018.
“We were able to achieve significant milestones which we can attribute to the importance of having a clear and consistent vision, world-class people, and most importantly, strong corporate governance,” revealed Pilipinas Shell president and CEO Cesar G. Romero. “If you believe that your strategy is well thought through, then it gives you the confidence to carry on, against rough patches,” he added.
Pilipinas Shell also declared cash dividends of P3 per share, or a total of P4.8 billion or 95% of its audited net income for 2018. This surpasses the company’s commitment to maintain a dividend payout of at least 75% and is the highest payout ratio since its IPO in 2016.
The company managed also to meet its target of opening 15 to 20 branches each for Select Shops and Deli2Go stores, in line with Pilipinas Shell’s direction of expanding its retail unit to reach and provide for more customers through a reliable and efficient supply chain.
Part of Pilipinas Shell’s commitment to nation-building and environmental responsibility is the new P730-million bitumen production facility which started operations in 2018. Through this Batangas-based facility, Pilipinas Shell shows its support for government infrastructure programs, lowers carbon footprint, and forges the country’s self-sufficiency through its locally-blended bitumen for local and overseas market.
This year, Pilipinas Shell strengthened its focus on people. Its annual Shell People Survey received a 95% response rate that ranked the company higher in the top quartile, overtaking other companies in aspects like leadership, people development, and operational excellence.
The 2018 Asia Corporate Excellence and Sustainability Awards in Singapore also recognized Pilipinas Shell as Asia’s Community Care Company of the Year. This emphasizes Pilipinas Shell’s continuing mission of being a partner in nation-building for the country.
Romero also reported that based on an independent study by Kantar-Millward Brown, Shell remained as the most preferred brand in the country in 2018. “Over four out of 10 motorists in the Philippines will choose Shell over our competitors,” Romero revealed.
On the social front, Pilipinas Shell also marked a number of achievements in 2018. For the year, the company had 174 scholars for the Shell PhilDev Scholarship Fund, 136 scholars for its Gas Mo, Bukas Ko scholarship program, 22 graduates for Unlad sa Pasada scholarship program, and 83 graduates for the GMBK-Fund for University Education and Leadership (FUEL) Development scholarship program, a success on the front for providing education for better livelihood for Filipinos.
“In the future, the need for mobility and the need for energy to support development will continue to increase. Pilipinas Shell is an energy company, and we aim to continue providing energy to our customers, through conventional and new sources,” Romero asserted. “Our intention is to be a strong and genuine partner in nation-building, that has always been our goal from the very beginning,” he added.