In a Philippine Stock Exchange (PSE) disclosure posted earlier today, the company announced it will be temporarily suspending its refinery operations for one month starting in mid-May 2020. The move comes as a response to lower demand for fuel, with transportation and overall movement in parts of the country limited by enhanced community quarantine (ECQ) measures.
“The spread of the COVID-19 pandemic led to the implementation of the Enhanced Community Quarantine in Luzon and selected provinces nationwide,” Pilipinas Shell said in its disclosure. “As a result, it has impacted the country’s economic activity due to limited mobility resulting in lower demand for fuel.
“Pilipinas Shell will continue to reinforce its financial resilience through cash conservation measures to position the Company for the subsequent economic recovery of the Philippines from the crisis,” it added, saying the temporary shutdown will help the company’s “cash conservation initiatives” and in the event refining margins drop further.
The company is also assuring everyone that its refinery has the flexibility to resume operations immediately once the situation stabilizes and that its import terminals ensure an uninterrupted supply of fuel for Filipinos.
You can read Shell’s full disclosure here. Do you think the demand for fuel will normalize by the time the company resumes refinery operations? Let us know what you think in the comments.