Shell Pilipinas Corporation reported a 109 percent drop in earnings to register a P310.33 million net loss in the first quarter of 2023 from a profit of P3.53 billion in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said it saw a 45 percent jump in core earnings to P0.8 billion in the first quarter of 2023 with growth driven by strong marketing delivery.
Sales volume increased by 8 percent and premium product mix remains healthy as it continues to recover from the pandemic and pursue its growth targets in 2023 despite various challenges such as oil price volatility, high inflation, and elevated interest rates.
However, first quarter sales volume growth was overshadowed by the P1.1 billion inventory holding loss arising from the decline in oil prices.
“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,” SPC President CEO Lorelie Quiambao-Osial said.
She added that, “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.”
Shell’s Mobility business achieved a volume growth of 8 percent, a strong first quarter performance for the B2C business while sustaining its high premium penetration of 27 percent across all sectors through its V-Power brand.
Seven new Mobility stations became operational in the first quarter. Selected new stations are sporting the Site of the Future design which further enhances the customer visit experience while reducing its carbon footprint, the latest of which is the new station in Banilad, Cebu.
Shell’s Non-Fuel Retail business has inaugurated three Shell Cafés to date catering to the ever-evolving needs of our customers. They are located in Mobility outlets in Tagaytay City, South Luzon Tollway and in Cebu City.
Non-fuel retail plays a key part in the firm’s strategy and has sustained double-digit growth in the past three years.
Commercial B2B business volumes improved by 8 percent, fueled by a volume growth of 48 percent for Aviation with the continued easing of travel restrictions and the opening of more flight routes, 18 percent for Marine with the increase in sea travel and transport of goods, and 2 percent for Lubricants with effective customer engagement programs and new customer wins.