Shell taps BPI for P9-billion loan.
The local unit of energy giant Royal Dutch Shell has closed a P9-billion, five-year loan with Ayala-led Bank of the Philippine Islands (BPI) to refinance existing loans.
In a disclosure to the Philippine Stock Exchange, Pilipinas Shell Petroleum Corp. said it entered into a medium-term loan agreement with BPI for P9 billion.
The loan was made 'in order to avail of lower interest rates and refinance existing loans,' the oil firm said.
Despite the loan, PSPC's gearing ratio will remain the same. The company's gearing ratio was at 19 percent at end-2017.
A low gearing ratio means the company has only a small amount of debt in proportion to its assets.
As of end-September 2017, Shell reported a net income of P6.6 billion up four percent from P6.4 billion a year earlier despite its two-month refinery shutdown earlier in the year.
Its net income was supported by retail business growth, high V-Power penetration and robust refinery performance.
It said retail network sales volumes increased by five percent due to the continued higher uptake of its new efficiency fuel, V-Power with Dynaflex Technology, and the expansion of its retail footprint.
Shell presently has 1,014 retail stations all over the country.
With the planned preventive maintenance work on the refinery completed in second quarter, Shell said it was able to capture strong refining margins in the third quarter.
In the commercial space, Shell said aviation and bitumen enjoyed higher sales volumes due to new customers, contract renewals and higher customer liftings.
Last June, the company officially launched the entry of its aviation fuels business at Mactan Cebu International Airport, expanding its supply envelope to cover the country's three busiest airports: Manila, Clark and Cebu.
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|Publication:||Philippines Star (Manila, Philippines)|
|Date:||Mar 9, 2018|
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