Shell Pilipinas Corporation (SPC) reported a 40 percent increase in core earnings despite the impact of high interest rates and volatile global fuel prices.
In a statement, SPC said the strong performance was attributable to operating expense savings and increased sales of premium products across its businesses.
"As we implement better ways to drive profitability, our discipline and focus are enabling us to compete in a growing but highly-competitive market,” Lorelie Quiambao-Osial, SPC president and chief executive officer, said.
At end-September, SPC said it focused on leveraging its brand strength and technological expertise to offer high-quality products, leading to increased sales of premium offerings.
Cost-saving initiatives and supply chain efficiencies resulted in operating expense savings and interest rate avoidance of P800 million, exceeding the company's P500 million target.
However, SPC reported a net income of P1.0 billion, impacted by inventory holding losses due to falling global oil prices and a one-off effect of network portfolio optimization.
SPC's cash position, however, continues to improve, with cash flow from operations at P4.8 billion.
The Mobility business, which includes Fleet Solutions and Commercial Road Transport, posted a seven percent volume growth in the third quarter driven by an expanding customer base.
The Non-Fuel Retail segment recorded a 17 percent growth in operating income, fueled by the expansion of Shell Helix Oil Change+, Shell Advance MotoCare Express facilities, and Shell Cafe stores.
The commercial business also recorded growth, adding new customers and increasing premium product penetration. Lubricants volume grew by five percent, while Construction and Road achieved a 16 percent volume increase due to new road paving projects using Shell Instapave and Bitumen FreshAir, both of which contribute to reducing harmful emissions.
Despite the challenging economic environment, Quiambao-Osial reaffirmed SPC's commitment to its stakeholders, stating, "Our strong year-to-date performance underscores our ability to deliver value even in a challenging economic environment.
“We will defend & grow both volume and value leveraging on our integrated business that will enable us to provide attractive returns to our shareholders. As we move forward and the external environment evolves, we will be adaptive with our strategy,” she concluded.