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.
