Shell Pilipinas Corp. booked P108 million in core earnings for the first quarter as surging oil prices, peso weakness, and intensifying geopolitical tensions disrupted energy markets and squeezed margins toward the end of the period.
The listed fuel retailer said market conditions deteriorated sharply in March after a relatively stable start to the year, forcing the company to tighten operations and raise inventory levels to help secure fuel supply continuity nationwide.
Despite the tougher environment, Shell Pilipinas posted a 2-percent increase in total sales volumes, buoyed by stronger demand in January and February before momentum softened amid rising inflation and affordability pressures.
Net income for the quarter reached P1.6 billion.
“The first quarter was uneven. Our underlying performance was stronger in January and February, but conditions changed sharply in March as market volatility intensified,” Shell Pilipinas president and chief exectuive officer Lorelie Quiambao Osial said.
Mobility retail volumes rose 3 percent on the back of loyalty programs and promotional offers, while Fleet Solutions expanded 5 percent following new account wins and customer renewals. Commercial Fuels grew 1 percent, supported by distributor demand and premium products.
Non-fuel businesses provided a brighter spot. Lubricants surged 27 percent due to stronger workshop demand and business-to-consumer sales, partially offsetting weakness in other segments. Bitumen sales, however, declined 6 percent as higher fuel prices, supply constraints, and delayed infrastructure projects dampened demand.
Shell Pilipinas said it intensified coordination with Shell’s regional trading and supply network as volatility escalated in March, while implementing tighter inventory controls and optimized scheduling to preserve operational continuity.
“The environment remains fluid, and the uncertainty we saw in March has extended beyond the first quarter,” Osial said, adding that the company would continue managing supply, costs, and cash flows conservatively.
The company also announced the appointment of former Public Works chief Rogelio Singson and business executive Robina Gokongwei-Pe to its board, strengthening governance and strategic oversight as the firm navigates a more volatile operating landscape.
