Shell Pilipinas Corporation narrowed its net loss to P929 million in the first nine months of 2026 from P2.7 billion at the end of the first half, as it returned to positive core earnings in the third quarter.
Year-to-date core net loss stood at P1.7 billion, while sales volumes remained broadly stable year-on-year despite continued volatility in the operating environment. Free cash flow was in a P151-million deficit through September, and gearing stood at 54 percent.
“The third quarter marked an important improvement, but our nine-month results show that we still have work to do,” president and chief executive Lorelie Quiambao Osial said. “Our focus is to turn the progress achieved in the quarter into sustained earnings and cash generation.”
The company continued to face pressure from geopolitical tensions in the Middle East, which kept global energy markets volatile and contributed to elevated product costs and import premiums. A weaker peso, persistent inflation, and severe weather in August also affected mobility, customer demand, and economic activity.
Higher fuel prices weighed on consumer purchasing power. The timing of domestic price adjustments and existing commercial terms also limited the company’s ability to immediately recover higher product costs, constraining profitability.
Despite these pressures, Shell Pilipinas maintained fuel supplies to customers and critical industries nationwide through its integrated supply chain, local infrastructure, and access to Shell’s regional and global supply network.
Commercial Fuels volumes rose 6 percent, supported by demand from the power sector, mining, and reseller channels. Lubricants volumes increased 5 percent, while Fleet Solutions grew 2 percent on new commercial wins and expansion across key accounts.
Mobility regained momentum toward the end of the third quarter following targeted customer initiatives and network development, although volumes remained 3 percent lower year-on-year amid elevated pump prices and August’s weather disruptions.
Aviation and Bitumen continued to face softer market conditions. Aviation was affected by weaker airline activity and higher fuel and foreign exchange costs, while Bitumen reflected slower infrastructure activity and project execution.
To restore profitability and improve cash generation, the company is focusing on disciplined pricing and cost recovery, profitable volume and product mix growth, supply competitiveness, tighter working-capital management, and greater cost and capital efficiency.
Shell Pilipinas is also strengthening its supply network through its Cebu Import Facility, which is targeted to begin operations in the fourth quarter. The facility is expected to bring products closer to customers in the Visayas, improve logistics efficiency and supply flexibility, and provide capacity for future growth.
Through its Defend, Grow, Deliver strategy, the company said it would protect its existing business, pursue selective growth, and maintain operating discipline.
