Pilipinas Shell

Petroleum Corporation
SHLPH

THE COMPANY

The Company
One of the leading oil refining and marketing
businesses in the Philippines
VISION To be the most admired and trusted
company that powers progress for the Filipino
through high-quality energy products &
services.

The Company
SHELLS BUSINESSES
Retail
sells different kinds of commercial fuel and
lubricants such as Shell FuelSave, Shell V-Power
Nitro+, etc.
Shell Select Convenience Store
Deli-to-Go

Commercial Business
supplies wholesale commercial fuel, lubricants,
aviation fuel, and Bitumen

The Company
SHELLS BUSINESSES
Manufacturing
The Tabangao Refinery, located in Batangas City, is
one of only two refineries in the Philippines. It has
been producing a broad range of high quality
petroleum products and even crude oil

Supply And Distribution

an integrated supply chain network that integrates
procurement, import, storage, and distribution of
finished petroleum products using different modes of
transport including vessels and trucks

PLANS FOR EXPANSION

Plans for Expansion

Pilipinas Shell is allocating P18.36 billion in
capital expenditures over the next five years to
build new retail service stations and upgrade
the Tabangao Refinery in Batangas City.
From the current 996 service stations, the oil
refiner's president Cesar Romero said his
company hopes to expand its retail network to
1,220 service stations by 2020.

THE MARKET

The Market
Shell, being one third of the Big Three of the Philippine
Oil Industry who collectively owns 60.4% market share,
has good competitive advantage.

The Market
CRUDE OIL
As one of the only two local refiners that imports
crude oil, Pilipinas Shell captures part of the
53.5% of total market share.
The Department of Energy said total crude oil
processed as in 2015 rose by 26.2%. With
increased refinery use, local petroleum refinery
production output also went up by 27.7% from
59,301 MB to 75,751 MB. This is a good sign for
Shells refinery production.

The Market
PETROLEUM
The Big Three cornered a combined 68.9% of the
total petroleum market where Shell owns 24% of it.
Minor oil players and end users took up only
31.1% only of the market.

INITIAL PUBLIC OFFERING

Initial Public Offering

Pilipinas Shell was officially listed on November 3,
2016 with the stock symbol "SHLPH at P67
opening price. SHLPH managed to trade 32
million shares worth P2.16 billion on its opening
day.
It is perceived to be included in the 30-company
main local stock barometer which reflects the most
traded, well-capitalized, and most liquid listed
companies in the Philippines.

Initial Public Offering

It plans to use the net proceeds from the primary
offering 90% for capital expenditure (60% for
expansion of existing retail network, 25% for refinery
turnaround works and 15% for enhancement of
distribution network) and the remaining 10% for
working capital and general corporate expenses.
It is important to take note of this allocation because it
means that most of the proceeds will be used for
growth expansion, not for paying off debt obligations
which is ultimately a good sign.

Initial Public Offering

Should I invest in SHLPH?
Information above suggests a good growth prospect
for Shell. Aside from that,
Shells 2015 Return on Equity - is at 13.62% at P3.553
billion pesos. This is good sign because this means that Shell
chose to finance its operations using equity instead of debt.
2015 Net Profit Margin comparison Petrons net profit
margin is at 1.55% versus Shells which is at 2.26%

THANK YOU!

Presentation by: Isis Normagne Pascual

Sources
http://pilipinas.shell.com.ph/about-us/what-we-do.html
http://business.inquirer.net/209369/major-oil-playersmarket-share-shrinking
http://thestandard.com.ph/business/220523/pilipinas-shellto-allot-p18b-for-ph-expansion.html
http://www.rappler.com/business/industries/power-andenergy/149549-pilipinas-shell-grand-ipo-launch
https://www.doe.gov.ph/downstream-oil
http://www.ibtimes.ph/shell-philippines-files-ipo-3-thingsknow-about-shell-finally-going-public-3142
http://investingengineer.com/shell-ipo-analysis/
All images used are from Google images