Shell Pilipinas swings to P300 million loss

MANILA, Philippines — Shell Pilipinas Corp. swung to net loss in the first quarter on the back of a P1.1 billion inventory holding loss arising from the decline in oil prices.

In a statement, Shell Pilipinas said it incurred a P300 million net loss from January to March, a reversal from the P3.5 billion net income recorded in the same period in 2022.

Core earnings of the company, however, surged by 45 percent year-on-year to P800 million fueled by strong marketing delivery as sales volume increased and premium product mix remained healthy.

Despite various challenges, such as oil price volatility, high inflation, and elevated interest rates, Shell Pilipinas  continues to recover from the pandemic.

“We create value for all our shareholders by growing our reach and impact, profitably. Guided by our powering progress strategy, we sustain our momentum of recovery quarter by quarter,” Shell Pilipinas president and chief executive officer Lorelie Quiambao-Osial said.

“We are pleased to report that growth in fuels and lubes sales volumes continued across businesses, such as mobility, lubricants, and aviation, while our non-fuel retail business maintained its double digit growth,” she said.

Shell Pilipinas’ mobility business posted an eight percent volume growth during the quarter on the back of strong performance for the business-to-consumer business, while sustaining high premium penetration across all sectors through its V-Power brand.

Seven new mobility stations became operational in the first quarter.

Commercial B2B business volumes likewise improved by eight percent, fueled by a 48 percent volume growth for aviation with the continued easing of travel restrictions and the opening of more flight routes.

The company recently changed its corporate name from Pilipinas Shell Petroleum Corp. to Shell Pilipinas, marking the energy company’s vital role in the energy transition.

Shell Pilipinas said the change signifies that the company goes beyond petroleum and will deliver more options to its consumers to provide sustainable and cleaner energy solutions to the country.

“As we embark on this next chapter, Shell Pilipinas continues to drive growth and innovation for the benefit of our customers, investors, society, and the planet,” Quiambao-Osial said.

“For 109 years, Shell has been a vital partner in nation-building. We will continue to invest and grow in the country as an energy user, provider, and partner in energy transition. We are here to assure and ensure that we will be providing more and cleaner energy solutions to meet the ever-evolving needs of Filipinos today and in the future,” she said.