Pilipinas Shell expects ending year in the black

by Lenie Lectura, 18 August 2015
from BusinessMirror

PILIPINAS Shell Petroleum Corp. said on Tuesday it expects to end 2015 in the black owing to stable oil prices.

“We are optimistic that we will be doing very well. We were negative last year and we hope to be positive this year because of stable prices,” Shell Country Chairman Edgar O. Chua told reporters on Tuesday.

Shell refused to divulge the net loss it incurred in 2014.

“When petroleum prices are low, the sales are good because of affordability. Thus, volume is high and there are no more inventory losses,” Chua added.

In 2014 the Department of Energy said the oil market was in turmoil due to the sustained production of shale oil. The Organization of the Petroleum Exporting Countries was forced to lower its prices in a bid to defend its market share.

The other day, Chua said the company remains committed to move out of Pandacan oil depot by November this year. So far, three of the 14 tanks were dismantled.

The dismantling began after the Supreme Court ruled with finality that oil firms occupying the Pandacan oil depot would have to vacate and cease operations.

Shell was the first to establish its facilities in the 33-hectare compound and used such for storage and distribution terminal for nearly a hundred years.