SHELL Pilipinas Corp. returned to profitability in the third quarter driven by sustained volume growth and stronger inventory.
The listed oil company reported an attributable net income of P1.93 billion, reversing the net loss of P3.36 billion posted last year, the company’s quarterly report submitted to the stock exchange showed.
“We took action to ensure recovery and were able to successfully generate higher earnings compared to the first half of 2023,” Shell Pilipinas President and Chief Executive Officer Lorelie Quiambao-Osial said, referring to the P123 million income in the first semester.
Net sales during the July-to-September period reached P61.84 billion, lower by 20.6% compared with P77.93 billion last year.
“Fuels volume is up 7%, credited to successful marketing promotions and loyalty offers facilitated through the Shell Go+ app,” the company said.
The company’s revenues declined by 20% to P62.75 billion from the P78.43 billion recorded last year.
Gross expenses went down by 27.8% to P59.06 billion, compared with P81.82 billion a year ago.
In the nine months to September, Shell Pilipinas’ attributable net income declined by 53.5% to P2.05 billion from P4.41 billion previously.
Revenues went down by 10.6% to P191.49 billion versus P214.12 billion last year.
The company’s gross expenses reached P185.97 billion, down 6.8% from the P205.5 billion posted a year ago.
As of September, the company reported a 1.8% increase in its sales volume, which stood at 3.08 billion liters from 3.02 billion liters last year.
Net inventories rose by 17.5% to P21.09 billion from last year’s P17.94 billion, which the company attributed to higher stock holdings during the period in anticipation of an increase in demand.
Shell Pilipinas said it had shown “remarkable growth and strengthened partnerships” in the commercial sector. It said that with the “substantial growth” in commercial road transport and volume growth in the aviation sector, “the company remains a strong player in various sectors, maintaining brand preference through innovative product launches and engaging campaigns.”
On Tuesday, shares of the company closed unchanged at P12.80 apiece. — Sheldeen Joy Talavera