Pilipinas Shell net income up in 9 months

MANILA, Philippines — Pilipinas Shell Petroleum Corp. saw its earnings rise by 31 percent in the nine months ending September, fueled by strong net sales.

Pilipinas Shell said it was able to generate a net income of P4.4 billion during the period, higher from the P3.4 billion reported last year despite challenges posed by rising inflation and depreciation of the peso against the dollar.

The company attributed its gains to strong marketing performance, consistent high premium fuel penetration, and disciplined cost management.

Net sales soared by 71.5 percent to P213.25 billion from P124.32 billion as a result of higher pump prices, driven by the increase in global oil prices and higher marketing volumes.

The company ended the third quarter with a positive cash flow from operations, excluding movement in working capital of P10.8 billion, up from the previous year’s P10.1 billion.

“We are committed to continue to power progress for the Philippines. Our strategy, together with our drive and agility, enables us to remain resilient through challenges and sets us to thrive, as we continue to deliver high-quality products and services for the growing and evolving needs of our customers,” Pilipinas Shell president and CEO Lorelie Quiambao Osial said.

Osial expressed confidence that the company would finish the year with strong volume delivery with the progressive opening of the economy.

B2B commercial fuels recorded a 16-percent hike in volume sales, anchored by the reliability of supply to its customers, which was even extended to spot sales in the power sector.

The company’s lubricants saw an eight percent volume increase, driven by a two-fold growth in premium sales volume across product categories.

Sales of its sustainable product segment, led by Shell Helix 0W, jumped by 39 percent from a year ago.

Aviation sales also rose by 52 percent year-on-year following the continued increase in consumer confidence to travel and the opening of international and domestic borders.

Pilipinas Shell’s construction and road business likewise grew by 24 percent, primarily through its premium products, as demand in road construction and rehabilitation continues.

Osial said the company continues to promote its sustainability agenda with integrated cross business offerings with the industry, local government, and sector-customers to meet the energy needs now and for the future.

Non-fuel retail (NFR) business, meanwhile, posted a 23 percent increase, with continued double-digit growth across all its segments.

The company’s NFR network covers 208 Shell Select stores, 223 Select Express, 87 Deli2Gos, and 470 Lube bays.