PILIPINAS SHELL PETROLEUM

CORPORATION
 
 
FINANCIAL STATEMENT
ANALYSIS
COMPANY BACKGROUND

PSPC (Pilipinas Shell Petroleum Corporation) are one of

the leading fuel retail players in the country. PSPC aim to
continue providing quality products and trusted service to
more Filipino motorists across the archipelago. Filipinos can
find their premium performance fuels, Shell V-Power Nitro
Plus Racing, Shell V-Power Nitro Plus Diesel, and Shell V-
Power Nitro Plus Gasoline, along with their main grade offers
of Shell Fuel Save Gasoline and Shell Fuel Save Diesel in their
stations all over the country.
COMPANY BACKGROUND

 1914- Asiatic Petroleum Company also known as Philippine

Island.
 1940- The Shell Company of the Philippine Islands.
 1959- Pilipinas Shell was incorporated under the name

The Shell Refining Company (Philippines), Inc.

 1970- Shell Philippines Incorporation.

 1973- Pilipinas shell Petroleum Corporation.

 Statement of Financial Position
As at 31 December 2016
With Comparative Figures for 31 December 2015
(All amounts in thousands Philippine Peso, except par value per share)
 
  Notes 2016 2015

Current assets      
Cash 3 4,274,266 3,576,802
Receivables, net 4 8,821,577 10,387,023
Inventories, net 5 16,381,397 11,348,533
Prepayments and other current assets 6 9,379,108 11,343,336
Total current assets   38,856,348 36,655,694
Non-current assets      
Long-term receivables, rentals and

investments, net 7 4,056,029 885,263

Property and equipment, net 8 23,378,318 22,309,078
Deferred income tax assets, net 9 330,310 3,712,251
Other assets, net 10 3,988,246 2,671,827
Total non-current assets   31,752,903 29,578,419
Total assets   70,609,251 66,234,113
Current liabilities      
Accounts payable and accrued expenses 11 17,021,164 16,174,597
Dividends payable 22 9,668 9,668
Short-term borrowings 12 5,370,000 2,717,000
Total current liabilities   22,400,832 18,901,265
Non-current liabilities      
Loans payable 13 11,000,000 16,000,000
Provisions and other liabilities 14 4,280,146 5,237,718
Total non - current liabilities   15,280,146 21,237,718
Total liabilities   37,680,978 40,138,983
Equity      
Share capital - P1 par value 15 1,681,058 1,653,558
Share premium 15 26,161,736 24,395,991
Treasury shares 15 (507,106) (507,106)
Retained earnings 16 5,111,868 181,508
Other reserves 10, 23 480,717 371,179
Total equity   32,928,273 26,095,130
Total liabilities and equity   70,609,251 66,234,113
 Vertical Analysis of Statement of Financial
Performance

  2016 % 2015 %
Current Assets        
Cash 4,274,266 6.05 3,576,802 5.4
Receivables, net 8,821,577 12.49 10,387,023 15.68
Inventories, net 16,381,397 23.20 11,348,533 17.13
Prepayments and other current assets 9,379,106 13.28 11,343,336 17.13
Total Current Assets 38,856,348 55.03 36, 655, 694 55.34
 

Non-Current Assets        
Long-term receivables, rentals and        
other investments, net 4,056,029 5.74 885,263 1.34
Property and Equipment, net 23,378,318 33.11 22,309,078 33.68
Deferred income tax assets, net 330,310 0.46 3,712,251 5.6
Other assets, net 3,988,246 56.48 2,671,827 4.03
Total Non-Current Assets 31,752,903 44.97 29,578,419 44.66
 

Total Assets 70,609,251 100 66,234,113 100

Current Liabilities        
Accounts payable and accrued expenses 17,021,164 24.11 16,174,579 24.42
Dividends payable 9,668 0.01 9,668 0.01
Short-term borrowings 5,370,000 7.60 2,717,000 4.10
Total current liabilities 22,400,832 31.72 18,901,265 28.54

Non-current Liabilities        
Loans payable 11,000,000 15.58 16,000,000 24.16
Provisions and other liabilities 4,280,146 6.6 5,237,718 7.91
Total non-current liabilities 15,280,146 21.64 21,237,718 32.06
     

Total Liabilities 37,680,978 53.37 66,234,113 60.60

Equity        
Share Capital 1 Par Value 1,681,058 2.29 1,653,558 2.5
Share Premium 26,161,736 37.05 24,395,991 36.83
Treasury Shares (507,106) 0.72 (507,106) 0.77
Retained Earnings 5,111,866 7.24 181,508 0.27
Other reserve 480,717 0.68 371,179 0.56
 

Total Equity 32,928,273 46.63 26,095,130 39.4

Total Liabilities and Equity 70,609,251 100 66,234,113 100

 Horizontal Analysis of Statement of Financial Performance
  2016 % 2015 %
Current Assets        
Cash 4,274,266 119.50 3,576,802 100
Receivables, net 8,821,577 84.29 10,387,023 100
Inventories, net 16,381,397 144.35 11,348,533 100
Prepayments and other current assets 9,379,106 82.68 11,343,336 100
Total Current Assets 38,856,348 106 36, 655, 694 100
   

Non-Current Assets        
Long-term receivables, rentals and        
other investments, net 4,056,029 492.70 885,263 100
Property and Equipment, net 23,378,318 104.79 22,309,078 100
Deferred income tax assets, net 330,310 8.90 3,712,251 100
Other assets, net 3,988,246 149.27 2,671,827 100
Total Non-Current Assets 31,752,903 107.35 29,578,419 100
   
 
Total Assets 70,609,251 106.60 66,234,113 100
Current Liabilities        
Accounts payable and accrued expenses 17,021,164 105.23 16,174,579 100
Dividends payable 9,668 100 9,668 100
Short-term borrowings 5,370,000 197.64 2,717,000 100
Total current liabilities 22,400,832 118.51 18,901,265 100
Non-current Liabilities        
Loans payable 11,000,000 68.75 16,000,000 100
Provisions and other liabilities 4,280,146 81.72 5,237,718 100
Total non-current liabilities 15,280,146 71.95 21,237,718 100
   
Total Liabilities 37,680,978 56.89 66,234,113 100
 
Equity        
Share Capital 1 Par Value 1,681,058 106.66 1,653,558 100
Share Premium 26,161,736 107.23 24,395,991 100
Treasury Shares (507,106) 100 (507,106) 100
Retained Earnings 5,111,866 2,816.33 181,508 100
Other reserve 480,717 129.51 371,179 100
 
Total Equity 32,928,273 126.19 26,095,130 100
Total Liabilities and Equity 70,609,251 106.61 66,234,113 100
 Vertical Analysis for Income Statement
  2016 % 2015 %

Gross Sales 142,075,428 103.88 161,789,781 103.07

Sales Discounts and Rebates (5,312,142) (3.88) (4,812,085) (3.07)

Net Sales 136,763,286 100 156,977,696 100

Cost of Sales (112,461,546) (82.23) (136,976,853) (87.26)

Gross Profit 24,301,740 17.77 20,000,843 12.74

Selling Expenses (10,562,727) (7.72) (11,060,933) (7.05)
General and Administrative Expenses (2,500,333) (1.83) (2,234,101) (1.42)
Other operating income, net 470,707 0.34 212,239 0.14

Income (loss) from Operations 11,709,387 8.56 6,918,048 4.41

Finance Income 175,707 0.13 69,130 0.04
Finance Expense (1058018) (0.77) (1,781,265) (1.14)
Other non-operating income (expense), net 1,041 0 17,092 0.01

Income (loss) before income tax 10,828,117 7.92 5,223,005 3.32

Benefit from (provision for) income tax (3,384,342) (2.48) (1,669,809) (1.06)

Profit (loss) for the period 7,443,775 5.44 3,553,196 2.26

 Horizontal Statement of Income Statement
  2016 % 2015 %
Gross Sales 142,075,428 87.85 161,789,781 100
Sales Discounts and Rebates (5,312,142) 110.39 (4,812,085) 100

Net Sales 136,763,286 87.12 156,977,696 100

Cost of Sales (112,461,546) 82.10 (136,976,853) 100

Gross Profit 24,301,740 121.50 20,000,843 100

Selling Expenses (10,562,727) 95.50 (11,060,933) 100
General and Administrative Expenses (2,500,333) 111.92 (2,234,101) 100
Other operating income, net 470,707 221.78 212,239 100

Income (loss) from Operations 11,709,387 169.26 6,918,048 100

Finance Income 175,707 254.17 69,130 100
Finance Expense (1,058,018) 59.40 (1,781,265) 100
Other non-operating income (expense), net 1,041 6.09 17,092 100

Income (loss) before income tax 10,828,117 207.32 5,223,005 100

Benefit from (provision for) income tax (3,384,342) 202.68 (1,669,809) 100

Profit (loss) for the period 7,443,775 209.50 3,553,196 100

RATIO ANALYSIS
Liquidity Ratio

Current Ratio

Year 2016 2015

Current Assets 38, 856, 348 36,655,694
Divided By: Current Liabilities 22,400,832 19,901,265
1.73 1.94

Current Ratio
2
1.95
1.9
1.85
RATIO

1.8
1.75
1.7
1.65
1.6
1 2
YEAR
Quick Ratio

Year 2016 2015

Cash 4,274,266 3,576,802
Marketable Securities 16,381,397 11,348,533
Accounts Receivables 8,821,577 10,387,023
Divided By:
Current Liabilities 22,400,832 18,901,265
1.73 1.34

Quick Ratio
1.8

1.6

1.4

1.2

1
Ratio

0.8

0.6

0.4

0.2

0
1 2
Year
Cash Ratio

Year 2016 2015

Cash 4,274,266 3,576,802
Marketable Securities 8,821,577 11,348,533
Divided By: Current Liabilities 22,400,832 18,901,265
0.58 0.79

0.9

0.8

0.7

0.6

0.5
Ratio

0.4

0.3

0.2

0.1

0
1 2
Year
Cash Flow from Operations Ratio

Year 2016 2015

Cash Flow from Operations 13213633 8499614
Divided by: Current Liabilities 22,400,832 18,901,265
0.59 0.45
 

0.6

0.5

0.4
Ratio

0.3

0.2

0.1

0
1 2
Year
Working Capital Ratio

Year 2016 2015

Current Assets 38,856,348 36,655,694
Less:Current Liabilities 22,400,832 18,901,265
16,455,516 17,754,429
 

Working Capital Ratio

18,000,000

17,500,000

17,000,000
Ratio

16,500,000

16,000,000

15,500,000
1 2
Year
Working Capital to Total Assets Ratio

Year 2016 2015

Working Capital Ratio 16,455,516 17,754,429
Divided by: Total Assets 70,609,251 66,234,113
0.23 0.27
 

Working Capital to Total Asset Ratio

0.28

0.27

0.26

0.25
Ratio

0.24

0.23

0.22

0.21
1 2
Year
ASSET MANAGEMENT
RATIO
Receivable Turnover Ratio

Year 2016 2015

Net Sales 136,763,286 156,977,696
Divided by: Average Receivables 9,604,300 9,604,300
14.24 16.34
 

Receivable Turnover Ratio

16.5

16

15.5

15
Ratio

14.5

14

13.5

13
1 2
Year
Day’s Receivable Ratio

Year 2016 2015

365 Days 365 365
Divided by: Receivable Turnover 14.24 16.34
26 days 22 days
 

Days Receivable Ratio

27

26

25

24
Days

23

22

21

20
1 2
Year
Inventory Turnover Ratio

Year 2016 2015

Cost of Goods Sold 112,461,546 136,976,853
Divided by: Average Inventory 13,864,465 13,864,965
8.11 9.88
 

Inventory Turnover Ratio

10

6
Ratio

0
1 2
Year
Days Inventory Ratio

Year 2016 2015

365 Days 365 365
Divided by: Inventory Turnover 8.11 9.88
45 days 37 days
 

Days Inventory Ratio

50

45

40

35

30
Days

25

20

15

10

0
1 2
Year
Accounts Payable Turnover

Year 2016 2015

Net Sales 136,763,286 156,977,696
Divided by: Average Accounts
Payable 16,597,880.5 16,597,880.5
8.24 9.46
 

Accounts Payable Turnover

9.6

9.4

9.2

8.8
Ratio

8.6

8.4

8.2

7.8

7.6
1 2
Year
Day’s Payable Turnover

Year 2016 2015

365 Days 365 365
Divided by: Receivable Turnover 8.24 9.46
44 days 39 days
 

Days Payable Ratio

45

44

43

42

41
Days

40

39

38

37

36
1 2
Year
Fixed Assets Turnover

Year 2016 2015

Net Sales 13,6763,286 156,977,696
Divided by: Average Fixed Assets 22,843,698 22,843,698
5.99 6.87
 

Fixed Assets Turnover

7

6.8

6.6

6.4
Ratio

6.2

5.8

5.6

5.4
1 2
Year
Total Assets Turnover

Year 2016 2015

Net Sales 136,763,286 156,977,696
Divided by: Average Total Assets 68,421,682 68,421,682
2 2.29
 

Total Assets Turnover

2.35
2.3
2.25
2.2
2.15
Ratio

2.1
2.05
2
1.95
1.9
1.85
1 2
Year
DEBT MANAGEMENT
RATIO
Equity Ratio

Year 2016 2015

Shareholder's Equity 1,681,058 1,653,558
Divided by: Total Assets 70,609,251 66,234,113
.02 .03
 

Equity Ratio
0.035

0.03

0.025

0.02
Ratio

0.015

0.01

0.005

0
1 2
Year
Debt Ratio

Year 2016 2015

Total Liabilities 37,680,978 40,138,983
Divided by: Total Assets 70,609,251 66,234,113
5.33 6.06
 

Debt Ratio
6.2

5.8

5.6
Ratio

5.4

5.2

4.8
1 2
Year
Equity-Debt Ratio

Year 2016 2015

Shareholder's Equity 1,681,058 1,653,558
Divided by: Total Liabilities 37,680,978 40,138,983
0.45 0.41
 

Equity Debt Ratio

0.46

0.45

0.44

0.43
Ratio

0.42

0.41

0.4

0.39
1 2
Year
PROFITABILITY RATIO
Gross Profit Margin

Year 2016 2015

Shareholder's Equity 1,681,058 1,653,558
Divided by: Total Liabilities 37,680,978 40,138,983
0.45 0.41
 

Gross Profit Margin

0.2
0.18
0.16
0.14
0.12
Ratio

0.1
0.08
0.06
0.04
0.02
0
1 2
Year
Operating Profit
Margin

Year 2016 2015

Earnings before Income Tax 10828117 5223005
Divided by: Net Sales 136763286 156977696

  0.08 0.03

Operating Profit Margin

0.09

0.08

0.07

0.06

0.05
Ratio

0.04

0.03

0.02

0.01

0
1 2
Year
Net Margin (Profit
Margin)

Year 2016 2015

Net Income 7,443,775 3,553,196
Divided by: Net Sales 136763286 156977696
0.05 0.02
 

Net Margin
0.06

0.05

0.04
Ratio

0.03

0.02

0.01

0
1 2
Year
Return on Assets (ROA)

Year 2016 2015

Net income 7,443,775 3,553,196
Divided by: Average Total Assets 68,421,682 68,421,682
0.11 0.05
 

Return on Asset
0.12

0.1

0.08
Ratio

0.06

0.04

0.02

0
1 2
Year
Operating Return on
Asset

Year 2016 2015

Earnings before Income tax 10,828,117 1,669,809
Divided by: Average Total Assets 68,421,682 68,421,682
0.16 0.02
 

Operating Return on Equity

0.18

0.16

0.14

0.12

0.1
Ratio

0.08

0.06

0.04

0.02

0
1 2
Year
Return on Total Equity

Year 2016 2015

Net Income 7,443,775 3,553,196
Divided by: Average Total Equity 29,511,701.5 29,511,701.5
0.25 0.12
 

Return on Total Equity

0.3

0.25

0.2
Ratio

0.15

0.1

0.05

0
1 2
Year
Return on Equity

Year 2016 2015

Net Income 7,443,775 3,553,196
Divided by: Common Equity 32,928,273 26,095,130
0.23 0.14
 

Return on Equity
0.25

0.2

0.15
Ratio

0.1

0.05

0
1 2
Year
Equity Multiplier

Year 2016 2015

Total Assets 70609251 66234113
Divided by: Total Owner's Equity 32928273 26095130
2.14 2.54
 

Equity Multiplier
2.6

2.5

2.4

2.3
Ratio

2.2

2.1

1.9
1 2
Year
DuPont Analysis

Year 2016 2015

Profit Margin 0.05 0.02
Multiplied by: Total Assets
Turnover 2 2.29
Multiplied by: Equity Multiplier 2.14 2.54
21.4 11.63
 

Dupont Analysis
25

20

15
Ratio

10

0
1 2
Year
Earnings Per Share

Year 2016 2015

Earnings available to stockholders: Profit for
the period 7,443,775 3,553,196
Weighted average number of shares 1,658,291,898 1,089,791,884
Treasury shares (67,614,089) (67,614,089)
 
1,590,677,809 1,022,177,795
Basic and diluted EPS 4.68 3.48

Earning Per Share

5
4.5
4
3.5
3
Ratio

2.5
2
1.5
1
0.5
0
1 2
Year
 THANK YOU

References:
pspc-audited-financial-
statements-2016 (3)
pspc-asr-2016
biz_resources_book-6