Shell Pilipinas maintains fuel supply continuity, navigates 1Q volatility
Manila, Philippines - Shell Pilipinas Corporation (PSE:SHLPH, “SPC” or “the Company”) reported first-quarter 2026 results amid heightened uncertainty, as sharp market movements in March disrupted energy markets and weighed on operating performance. Against this backdrop, SPC stayed adaptive, supported by an integrated supply chain, and disciplined operations that helped sustain business continuity and fuel availability in the country.
For the quarter, core earnings were Php108 million, reflecting margin pressure from pricing lag effects and more competitive market conditions as volatility intensified in March. Total volumes grew 2%, supported by stronger underlying performance in the first two months of the quarter before momentum softened in March as affordability pressures and market volatility increased. Net income for the period was Php1.6 billion.
“The first quarter was uneven. Our underlying performance was stronger in January and February, but conditions changed sharply in March as market volatility intensified,” said Lorelie Quiambao Osial, President and CEO of Shell Pilipinas. “In this environment, our priorities remain clear—safety and wellbeing, business continuity, responsible operations, and helping ensure fuel availability for the country during a period of heightened volatility. We remain adaptive in how we respond as conditions continue to evolve.”
March volatility reshapes operating environment
Shell Pilipinas entered the year with relatively firmer market conditions, supported by steadier customer activity in January and February. By March, however, the backdrop shifted sharply as geopolitical tensions drove oil prices higher, the peso weakened, and inflationary pressures weighed on affordability and working capital across the sector.
To support supply continuity, the Company increased inventory levels during the quarter, helping sustain fuel availability amid heightened uncertainty.
Strong start offset by March volatility
Shell Pilipinas delivered 2% overall volume growth in the quarter, with Fuels also up 2%, although March volatility moderated the earlier momentum seen in the first two months of the year.
Mobility volumes grew 3%, supported by targeted value offers, loyalty programs, and stronger site execution, while Fleet Solutions posted 5% growth on new account wins and renewals with key partners. Commercial Fuels grew 1%, supported by the distributor channel and continued demand for differentiated products, while Aviation volumes were down 1% amid higher market premia, selected partnership changes, and Middle East-related flight cancellations.
Across Non-Fuels, Lubricants grew 27% on stronger B2C performance and workshop-led demand generation, while Bitumen volumes declined 6% as fuel price increases, supply constraints, and project award delays affected customer drawdowns.
Performance across segments remained mixed, reflecting shifting customer priorities toward reliable supply amid tighter market conditions, alongside continued demand in selected segments for differentiated products, as well as the impact of volatility, cost pressures, and competitive dynamics.
Focused on continuity, reliability, and disciplined response
As market conditions became more pressured in March, SPC remained focused on serving customers and partners reliably while managing risks with discipline.
The Company strengthened coordination across its operations and with Shell’s broader trading and supply network to respond to changing demand patterns and support stable service levels. Tighter inventory management, optimized scheduling, and active supply planning helped SPC maintain operational continuity amid a more volatile environment.
Shell Pilipinas also continues to engage with relevant authorities, as appropriate, to support industry-wide supply readiness. As conditions evolve, the Company will remain adaptive and deliberate in managing supply, costs, and cash while prioritizing safe and reliable operations.
Board strengthened with new directors
Effective May 12, 2026, Shell Pilipinas welcomed Mr. Rogelio “Babes” Singson and Ms. Robina Gokongwei-Pe to its Board.
Mr. Singson brings extensive leadership experience across infrastructure and utilities in both the public and private sectors, including transport, water, power, and public infrastructure. Ms. Gokongwei-Pe brings broad experience in retail, property, aviation, and corporate governance across one of the country’s leading business groups.
Both appointments will further strengthen the Board’s depth in governance, strategy, and long-term value creation as the Company continues to navigate a more dynamic operating environment.
“The environment remains fluid, and the uncertainty we saw in March has extended beyond the first quarter,” Osial added. “In times like these, what matters most is staying adaptive and reliable for our customers and partners, while continuing to strengthen the resilience of our business and our people as conditions evolve.”
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