AMID the lingering effects of the coronavirus pandemic, Pilipinas Shell Petroleum Corp. (Shell) remains optimistic to sustain its business this year.
“We started 2020 with a very healthy balance sheet, which puts us in a better position to handle the Covid-19 situation,” said Pilipinas Shell chief executive officer and country chairman Cesar Romero.
“I am proud that Pilipinas Shell has continued to provide vital energy products to our customers and communities, even during the enhanced community quarantine (ECQ) period,” he aded.
The company closed the year 2019 strong with P5.6 billion in net income, a hefty 11 percent increase from P5.1 billion in 2018.
Romero is optimistic that with Pilipinas Shell’s sufficient retained earnings and reasonable gearing level, the company can maintain financial resilience and survive the drastic reduction in domestic demand as a series of quarantines were implemented to help the country stem the Covid-19 pandemic since March.
“Now, more than ever, Pilipinas Shell draws from its 106 years of experience doing business in the Philippines. We’ve had our share of regional and global economic crises, socio-political disruptions and industrial shifts. We know what levers we can pull in downturns, even dramatic ones like this, and we are in control. We have the will, people and resources, as well as our core values to get us through this particularly challenging time,” he said.
In January, Shell’s supply chain and distribution network was disrupted following the Taal Volcano erupton. The company also dealt with plummeting global oil prices resulting from the price war between Saudi Arabia and Russia in the first quarter of the year.
Pilipinas Shell chairman Min Yih Tan expressed confidence that the company’s recovery strategies are in place.
“We are in a robust position not only to deal with market volatility, but also to support the country’s growth as it enters the ‘new normal,’” he said, during the company’s annual stockholder’s meeting on June 16.
Romero said the company has enhanced its cash conservation measures by generating revenues, reducing costs and capital expenditures, and managing working capital.
“We have reached more than half a million Filipinos through our Covid-19 response activities,” he said. (PR)