Pilipinas Shell profit up 37%

Pilipinas Shell Petroleum Corp. reported a net income of Php2.2 billion (US$48.4 million) in the first half, up 37.5% from Php1.6 billion (US$35.2 million) during the same period last year. In a report to the Securities and Exchange Commission, Shell cited increased sales volume and reduced expenses, partly due to a strengthened peso. It said the sales volume reached 2.96 billion liters, up 3% from 2.87 billion liters in the same period last year. Shell said there was an industry contraction of 1% as of April, but it made gains through sales and marketing programs and acquisition of new key accounts. It said its expenses decreased with reduced provision for bad debt and depreciation, resulting from changes in asset life. Shell said crude oil costs averaged US$62.20 a barrel in the first half, down 2% from US$63.68 in the same period last year. It said the peso averaged Php47.75 to the U.S. dollar, compared with Php52.06 in the first half of last year. Shell said it had a full-year budget of Php1.6 billion (US$35.2) for capital expenditures, which it said would be for refinery, depot, retail, commercial and LPG (liquefied petroleum gas) operations. (August 23, 2007)