Shell Pilipinas Corp. said Friday it posted a net income of P123 million in the first half of 2023, down from P7.8 billion it earned in the same period last year.
SPC said that on a quarter-to-quarter basis, it recovered from a net loss in the first quarter amid challenging conditions brought about by decreasing oil prices and tripling of interest rates.
Core earnings in the first half stood at P1.4 billion as its marketing business rebounded. Total marketing volume increased 9 percent, while premium products grew across key sectors.
Non-fuel retail also posted 14-percent growth from last year and ws 33 percent higher than the pre-pandemic period.
SPC said this remarkable marketing delivery was outweighed by the rise of borrowing costs and inventory holding losses realized due to the decline of global oil product prices.
“We will continue our strong momentum in marketing delivery and will further reduce our expenses to accelerate our commitment to resume dividend payment and reward our dedicated shareholders,” SPC president and chief executive Lorelie Quiambao- Osial said.
“We have built momentum and we will finish strong for the second half of 2024. We will do this with brilliant basics and continued innovation to serve our ever-growing customer base with high quality Shell products through our best-in-class services and facilities,” Osial said.
The mobility business grew on targeted marketing campaigns, powered by Shell V-Power.
Total volume delivery went up by 9 percent, while premium fuel, lubricants and bitumen products penetration remained high.
Seven new sites opened in the first half, bringing the total to 14 new mobility destination sites for the year which contributed to the 14-percent growth of the NFR business.
Commercial B2B sectors also increased sales volume by 10 percent over the previous year.
The lubricants business garnered a 5-percent increase as new product launches and e-commerce solutions won more hey accounts.
“While competition abounds in the local market, the superior quality and high reliability of our products coupled with our customer-centric commitment continues to make Shell foremost in the minds of the motoring public,” said Osial.
“We aim to continue to be the top choice of motorists and companies as the economy continues to rebound to pre-2019 levels,” she said.