BP CORPORATION

PILIPINAS SHELL
PETROLEUM
CORPORATION
 CONTENT:

I. Description of the Two Conglomerates including Subsidiaries and Affiliates

II. Comparative Analysis of Financial Performance and Position
III. Advantage of one over the other
IV. Disadvantage of one over the other
V. Conclusion
VI. Recommendations
 I. Description of the Two Conglomerates including
Subsidiaries and Affiliates

Pilipinas Shell Petroleum Corporation operates as a downstream refining and marketing company. The Company focuses on

turning crude oil into a range of refined products including gasoline and kerosene. Pilipinas shell corporation is located in
Manila, Philippines and is part of the Petroleum Refining Industry.The Board of Directors is led by Non-Executive
Chairman Min Yih Tan and the Management Team for Pilipinas Shell is led by President Cesar Romero. BP, or British
Petroleum, is one of the world's largest oil and gas companies.BP traces its origins back to the Anglo-Persian Oil
Company which discoveredoil in Iran in 1908. The company operates as an integrated oil and gas company. It operates through
the following segments: Upstream, Downstream and Rosneft.
 II. Comparative Analysis of Financial
Performance and Position

BP corporation plunged to a loss for the first three months of the year amid rising debt and plummeting global oil prices but
will still pay its shareholders a rising dividend.The collapse in oil demand due to the coronavirus pandemic drove BP to a
$628m (£505m) loss for the first quarter, compared with a profit of $2bn in the same period last year. meanwhile the Pilipinas
shell petroleum corporation net income attributable to shareholders on a current cost of supplies (CCS) basis and excluding
identified items, which is used as a proxy for net profit, came in at a loss of $18.4 billion for the second quarter.This followed
an impairment charge of $16.8 billion post-tax over the same period, given the oil major now anticipates significantly lower
oil and gas prices over the next 30 years.
 III. Advantage of one over the other
Even though the choice between BP and pilipinas Shell corpororation, may often appear to be splitting hairs, at the moment
the Pilipinas shell petroleum corporation offers a more desirable contrarian dividend investment opportunity than BP
corporation. A Monte Carlo Simulation indicates that the current share price of Shell is more likely to be lower than their
intrinsic value than for BP. On the other hand the BP corporation has more cost-efficient upstream operations than
Pilipinas Shell petroleum corporation and BP’s operations are more environmentally-friendly when compared to Shell. BP’s
upstream faces threats from Shell’s aggressive capital expenditure plans over the next five years
 IV. Disadvantage of one over the other
Pilipinas shell petroleum corporation has less proved reserves compared with BP corporation and has also been not consistent
in maintaining it’s reserves volume over the last ten years.The average proven oil and gas reserves of shell over the last ten
years are approximately 20% lower compared to BP corporation. Furthermore shell corporation has more less -efficient
upstream operations, with its ten-year average upstream unit production cost. On the otherhand BP corporation has
significantly higher leverage than pilipinas shell petroleum corporation, which higher risks and sets them up not better to
reinstate their dividend since it is almost certain that shell corporation will increase theirs shortly.
 V. Conclusion
As we progress into the future, supplies will tighten and oil prices will increase further. We've already felt the ripples from the
recent rises of commodity pricing. Based from what I have learned we can bear in mind that wether that corporation is
largest and very progressive, there is still own disadvantage and encounter bad consequences like the covid 19 pandemic
that result into lower financial performance and position. As we are in the small or big companys we must consider our
employee relationship in order to achieve or make companys be successful.
 VI. Recommendations
Pilipinas shell petroleum corporation and BP corporation are the two most powerful petroleum company in
term of financially. These corporations should seek new market strategy to sustain its competitive advantage
over its competitors. Investing more over technology may ensure these corporations to find and operate new
reserves. This strategy will certainly ensure to maximize profit for the company.
FINANCIAL MANAGEMENT
Reymark C. Galasinao Bsac 3a