Shell Pilipinas Corporation · PSE:SHLPH
Shell Pilipinas — Pilipinas Shell Petroleum — Q2 2017 Earnings Presentation
13 slides from Shell Pilipinas's earnings presentation, August 2017
Slide 1: Pilipinas Shell Petroleum Corporation 2Q 2017 Analysts and Investors Briefing
Pilipinas Shell Petroleum Corporation 2Q 2017 Analysts and Investors Briefing August 2017 Pilipinas Shell Petroleum Coproration 1
Slide 2: Disclaimer
Disclaimer NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES References in this presentation to “our Company” or the “Corporation” and to “PSPC” refer to SHLPH. The words “we”, “us” and “our” are used to refer to SHLPH or to those who work for SHLPH. This pres
Slide 3: Robust financial performance
Robust financial performance Summary ▪ EBITDA adjusted for COSA: ↑ 9% y/y to PHP 6.8B ▪ Cash flow from operations: ↑ 26% y/y reaching PHP 7.8B ▪ Consistently strong Balance Sheet: gearing ↓ 22% Fueling Pursue Cutting-edge fuel technology and effective marketing strategies profitable fuel progress fo
Slide 4: Net Income & CFFO
Robust 1H17 Net Income delivering 56% of FY16 NIAT despite planned refinery shutdown Delivered strong earnings Planned refinery preventive FY ROE -242.1% 13.8% 22.9% maintenance shutdown despite 1H ROE 16.3% 12.3% Lower inventory holding gains due to softer global oil prices 7,843 Delivered 26% Net
Slide 5: EBITDA adjusted for COSA increased 9% vs same period last year
Strong underlying performance: EBITDA adj. for COSA increased by 9% vs same period last year -PHP5B -PHP8B -PHP11-12B -PHP7B EBITDA adjusted for COSA (PHPm) 12,317 9% 10,138 1H17 result covers 67% of our FY16 3,760 6,825 6,259 6,809 EBITDA adj. FY 1H 1,904 COSA 2014 2015 2016 1H 2017 Sales volume
Slide 6: V-Power and Non-fuel retailing drives the Retail business
V-Power and Non-fuel retailing drives the Retail business Stellar Retail performance due to successful marketing Retail network volume increased by 4% campaigns from 1H16 to 1H17 despite >10% increase 7% 5% in pump prices Sa l es volume (ML) New V-Power with DYNAFLEX technology launch in June 8 incr
Slide 7: Retail kick-starts construction of low carbon sites
Retail kick-starts construction of low carbon sites #makethefuture 25% of site electricity bill UN Avenue, Manila savings Future 2017 NTIs equipped with solar panels Zamboanga City Fitted with battery option CSC Road, Talisay Dahlia City City Site fully consumes harvested energy Pilipinas Shell Petr
Slide 8: Commercial Business rebounded from 1Q17 to 2Q17
Despite structural change in power sector, Commercial Business rebounded by 8% from 1Q17 to 2Q17 Sales volume (ML) 8% -3% Commercial fuels sales grew 498 539 556 by 9% vs 1Q17 1Q17 2Q17 2Q16 Note: Commercial volumes include commercial fuels, lubricants and bitumen sales. Commercial volume Won contra
Slide 9: Focus on Safety
Maintaining a reliable refinery through planned preventative maintenance Fit for next major turnaround in 4 Project tie-ins Focus on years and statutory compliance Safety No Fatal incident No Lost Time incident Flare upgrade Zero environmental non- compliance Pilipinas Shell Petroleum Corporation 9
Slide 10: Consistently strong balance sheet
Consistently strong balance sheet CFFO generated more than sufficient to cover capital investments Gearing at 22% with lower borrowings (PHP2.2B) and 2H16 dividends paid (PHP2.6B) 92% Borrowings & LTD Gearing Ratio (%) 7,843 (PHPb) 37% 6,329 27% 23% 6,200 22% Cash Flow (PHPm) 4,773 44.6 18.7 16.4 17
Slide 11: Filipinos Recognized Globally
Leading corporate governance, world class talent development, and partnership with the Filipinos in nation building Corporate Governance Empowerment Filipinos Environmental Company of the year Recognized Social Globally Economic Caring for the Filipinos Recognized Community Globally Pilipinas Shell
Slide 12: Update on our key strategies
Update on our key strategies North Mindanao Import Facility Growth in Premium Fuel Non-Fuel Penetration Retail and Network Business Expansion Aviation Supply Points Expansion Bitumen Production Pilipinas Shell Petroleum Corporation 12
Slide 13: Slide 13
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