Shell Pilipinas Corp. said Wednesday it incurred a net loss of P300 million in the first quarter arising from the P1.1-billion inventory holding loss it booked because of the decline in oil prices.
Shell posted a net income of P3.527 billion in the first quarter of 2022.
The company said in a disclosure to the Philippine Stock Exchange it recorded P800 million in core earnings in the first quarter, or 45 percent higher than the same period last year.
This was driven by strong marketing delivery, as sales volume went up by 8 percent on a healthy premium product mix.
Cash flow from operations excluding working capital movement reached P1.4 billion.
“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 and chief executive Lorelie Quiambao-Osial said.
“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,” she said.
Shell’s Mobility business achieved an 8 percent volume growth, 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.
Commercial B2B business volumes improved by 8 percent, fueled by 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 two percent for lubricants.
Shell changed its corporate name from Pilipinas Shell Petroleum Corp. to mark its vital role in the energy transition. This change signifies that Shell goes beyond petroleum and will deliver more options to its consumers to provide sustainable and cleaner energy solutions to the country.
“As we embark on this next chapter, Shell Pilipinas continues to drive growth and innovation for the benefit of our customers, investors, society, and the planet. For 109 years, Shell has been a vital partner in nation-building,” said Quiambao-Osial.
“We will continue to invest and grow in the country as an energy user, provider, and partner in the energy transition. We are here to assure and ensure that we will be providing more and cleaner energy solutions to meet the ever-evolving needs of Filipinos today and in the future,” she said.