SHELL PILIPINAS CORP. posted a third-quarter (Q3) net income of P343 million, reversing a P762.04 million loss in the same period last year, as higher sales volumes and lower non-operating costs offset a slight decline in net sales.
Net sales for the quarter fell 3.7% to P57.58 billion from P59.80 billion, while cost of sales decreased 6.3% to P51.75 billion.
“We continue to maintain growth across key segments through September,” Shell Pilipinas President and Chief Executive Officer Lorelie Quiambao Osial said.
“Our stronger cash generation, higher earnings, and sustained improvement in gearing versus the prior year reflect a business that continues to deliver quality results even in a hypercompetitive environment.”
For the nine months ending September, net income rose 33% to P1.31 billion from P983.70 million, while core earnings increased 9.6% to P2.45 billion from P2.24 billion.
“This was due to high premium product penetration across sectors, volume growth in commercial fuels, aviation and lubricants, and lower non-operating costs offset with the decline in marketing margins,” the company said.
For the nine-month period, net sales declined 7.3% to P171.72 billion from P185.16 billion, mainly due to lower pump prices from the general drop in global oil prices, while cost of sales fell 8% to P154.98 billion from P168.50 billion.
“Our priorities remain unchanged: cash discipline, stronger returns on capital, and profitable growth. We enter the fourth quarter on the front foot and intend to finish the year stronger, setting a solid base for 2026,” Ms. Osial said.
Shell has earmarked a capital expenditure budget of up to P4 billion from 2027 to 2030 to expand its asset portfolio in line with its medium-term growth strategy.
At the local bourse on Tuesday, shares in the company closed unchanged at P6.10 each. — Sheldeen Joy Talavera
