Shell Pilipinas Corp., the local unit of international energy group Shell, will continue to trim expenses and sustain its marketing strategy to grow profit, which rebounded in the second quarter after a dismal performance in the first three months due to lower oil prices and higher interest rates.
The second largest oil company in the country booked a net income of P433.1 million in the April-June quarter, a sharp fall from the year-earlier period’s P4.24 billion net profit but enough to overshadow losses in the first quarter and return a P123.9 million net income in the first half. It reported net income of P7.77 billion in the first half of 2022.
Net sales in the second quarter declined 17 percent to P63.13 billion while cost of sales only declined 12 percent to P58.2 billion. Other expenses was flat at P3.6 billion, resulting in a drop in second-quarter operating income to P1.55 billion from P6.83 billion in the year-earlier period.
Shell Pilipinas said total marketing volume increased by 9 percent while premium products increased across sectors. Non-fuel retail also saw a 14 percent growth and is 33 percent higher than the pre-pandemic level. These gains, however, were offset by higher borrowing cost and inventory holding losses realized because of the decline in global oil prices.
“We will continue our strong momentum in marketing delivery and will further reduce our expenses to accelerate our commitment to resume dividend payment and reward our dedicated shareholders,” said Lorelie Quiambao-Osial, Shell Pilipinas president and chief executive officer, in a statement.
o“We built momentum and we will finish strong in the second half of 2024,” she added.
