Shell Pilipinas Shows Strong H1 Performance with PHP 1.4B Core Earnings
Aug 11, 2023
Shell Pilipinas Corporation (SPC) recovers from its net loss in Q1 and delivers a net income of P123 million for the first half of 2023, amid challenging conditions brought about by volatility in oil prices and tripling of interest rates. SPC’s core earnings for the first half of 2023 stand at P1.4 billion as its marketing business rebounds.
Total marketing volume increased by 9% while premium products increased across key sectors. Non-fuel retail (NFR) also posted a double-digit growth of 14% from last year and is 33% higher than the pre-pandemic period. However, this remarkable marketing delivery was tempered by the aforesaid factors that affected the industry.
“We have built momentum and we will finish strong in 2023 with exceptional customer experience and continued innovation in serving our growing customer base with world-class Shell products and services,” SPC President and Chief Executive Officer Lorelie Quiambao-Osial said.
A dynamic market
The mobility business has grown attributable to targeted marketing campaigns, powered by the most preferred premium fuel in the country, Shell V-Power. Total volume delivery grew by 9% while premium fuel, lubricants, and bitumen products penetration remain high.
Seven new sites opened in the second quarter, bringing the total to 14 new mobility destination sites for the year. With its suite of fuels and NFR expansion in new and existing mobility sites, these have contributed to the 14% growth of our NFR business.
Commercial B2B sectors also increased sales volume by 10% over the previous year. Volume increased by 39% for Aviation and more than tripled for Commercial Road Transport. Our lubricants business garnered a 5% increase as new product launches and e-commerce solutions won more key accounts.
A circular economy
Shell Pilipinas remains strongly committed to providing cleaner energy solutions. Shell Lubricants launched the Lube Recycle program among its initiatives, empowering the organization, its partners, stakeholders, and customers to practice proper and efficient plastic management and recycling. This shows Shell’s support to the country’s Extended Producer Responsibility (EPR) law.
In the first quarter of 2023, the company reduced carbon emissions by shifting its energy sources to renewable energy. The company also neutralized carbon emissions through optimized road and primary transport scheduling.
A sustainable future
SPC will continue to operate in line with the powering progress strategy by working towards its commitment to maximize fuel efficiency that its customers need and ensuring return on investment of SPC’s shareholders.
“We are committed to delivering value to our customers, to our shareholders, and to our staff and business partners. This includes our commitment to deliver shareholder returns,” said SPC President and Chief Executive Officer Lorelie Quiambao-Osial. “Through our Powering Progress strategy and our focus on performance, financial discipline and simplification, we will keep moving the Philippines forward.”