Pilipinas Shell Petroleum Corp. reported a net income of PHP 5.07 billion (USD105.9 million) in the first half of 2016, up 28% from the same period a year ago. However, sales dropped 19% to PHP71.7 billion (USD1.5 billion) from PHP88.37 billion (USD1.8 billion) largely due to lower product prices.

“With a recently completed rights issue in 2015, the company believes it has low gearing and a well capitalized balance sheet that positions it for growth opportunities,” Shell said.

Shell raised PHP17.9 billion (USD374.1 million) from a rights offering in 2015, effectively boosting its capital, which is necessary for its planned initial public offering (IPO).

Shell is pursuing its long-delayed IPO this year, hoping to raise about PHP29.7 billion (USD620.7 million) from the sale of 330 million shares. Reports are the IPO will be launched before Country Chairman Edgar Chua retires in October. Proceeds from the IPO will be used to expand the company’s existing retail network and upgrade of its refinery in Batangas province, located south of Manila. Shell has tapped JP Morgan and BPI Capital as lead underwriters. Rothschild serves as the financial advisor.

Shell had the second largest market share in the Philippines in terms of fuel sold, at 29%, as of the end of 2015. As of June 2016, the company had a network of 966 retail service stations, of which 583 are located in Luzon, 160 in the Visayas and 223 in Mindanao.