PILIPINAS SHELL POSTS HUGE P5.5 BILLION LOSS

The collapse in global oil prices, coupled with the slowdown in economic activity under a government-imposed quarantine due to the coronavirus disease of 2019 (COVID-19), has resulted in a first quarter loss of P5.5 billion for Pilipinas Shell Petroleum Corp.

“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. We will overcome this challenge the same way we surmounted the various crises and upheavals during our 106-year legacy in the Philippines, "Pilipinas Shell president Cesar Romero said.

The company said it is  taking  prompt action to reinforce the financial strength and resilience of its business, leveraging on the flexibility of its supply chain and prudent balance sheet management over the past years and strong operational cashflows.

Pilipinas Shell said it is implementing cash conservation measures and aggressive working capital management in response to the drastic decline in demand during the pandemic.

From P0.5 billion operating expense savings announced in March, the management team doubled the target savings to P1 billion from various cash preservation initiatives.

Planned capital expenditure for the year is also reduced by 25% which translates to over P1 billion. In line with measures taken by the Shell group, Pilipinas Shell employees will not be receiving discretionary performance related bonuses for their 2020 performance. #coronavirusimpact #COVID19