Shell Pilipinas Corp. expects its income to grow by at least 6 percent this year due to expected increase in spending and fuel demand recovery in the country.
Reynaldo Abilo, Shell Pilipinas treasurer, vice president for finance and chief risk officer, said in a briefing yesterday growth will be driven by expectations of increased motorization, improved consumer spending for the remainder of the year and overall demand recovery.
“We expect to grow core earnings by at least in line with the GDP growth of the country which is between 6 and 7 percent,” Abilo added.
Last year, Shell Pilipinas booked a 6 percent improvement in net income at P4.1 billion from 2021’s P3.9 billion, attributed to strong marketing performance and sustained high premium fuel penetration.
Abilo said the company is allotting around P5 to P6 billion for capital expenditures this year, flat from last year’s P5.6 billion.
Shell Pilipinas said the money will be spent to expand mobility stations as the company intends to continue to grow again by about 40 to 60 sites this year apart as well as for the ongoing construction of the import facility in Darong, Davao del Sur expected to be completed next year.
“Based on projections, we will be able to internally fund our capex program for this year which means cash flow from operations is enough to cover the P5 to P6 billion capex program for 2023,” Abilo said.– Jed Macapagal
