Power

COVID-19 impact: Shell PH shuts down refinery operations for good

Pilipinas Shell Petroleum Corp. has decided to shut down its 110,000 barrel-per-day refinery in Tabangao, Batangas as the coronavirus outbreak continues to wreak havoc on fuel consumption.

In a disclosure, the local subsidiary of Anglo-Dutch energy firm Royal Dutch Shell said the facility would be converted “into a world-class full import terminal to optimize its asset portfolio and enhance its cost and supply chain competitiveness.”

“. Due to the impact of the COVID-19 pandemic on the global, regional and local economies, and the oil supply-demand imbalance in the region, it is no longer economically viable for us to run the refinery,” Pilipinas Shell president and CEO Cesar Romero said in a statement.

Shell has suffered massive losses in the first half due to the impact of the global lockdowns owing to COVID-19. It incurred a P6.7 billion net loss in January to June, a reversal of the P3.7 billion profit reported in the same period last year due to inventory losses.

Another sad news for investors: Shell said it wouldn’t be paying dividends this year to conserve its cash.

“We are committed to make the right sustainable decisions now to protect our shareholders for the long-term,” Romero added.

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