Lower oil prices cut Shell earnings in H1

MANILA, Philippines — Shell Pilipinas Corp. (SPC) delivered lower earnings in the first six months following weaker sales caused by declining global oil prices.

The listed oil firm recorded a net income of P965.3 million from January to June, down by 44.7 percent against last year’s P1.75 billion.

Net sales likewise went down by 8.9 percent to P114.14 billion from P125.35 billion as domestic pump prices mirrored the downtrend in the global oil market, coupled with lower marketing volumes.

Core earnings, however, jumped by 37.7 percent to P1.98 billion from P1.44 billion on the back of improved margins and higher premium penetration.

“Our strong free cash flow, core earnings growth and improved gearing reflect not only our long-term strategic focus but also the tangible short- to medium-term gains we’re delivering,” SPC president and CEO Lorelie Quiambao Osial said.

“These results show how strategy, discipline and agility are enabling us to create sustained value while navigating an ever-changing and volatile environment,” she said.

In the first half, SPC reported sustained volumes year-on-year for the fuels business, driven by steady results from the mobility segment.

The non-fuels segment, meanwhile, was said to have expanded its market, with lubricant volume growing by six percent.

“As it executes its 2025 roadmap, the company is committed to defending its volumes and market share, growing its businesses and delivering on its external commitments,” SPC said.

SPC, which is 55 percent owned by the Netherlands’ Shell Overseas Investments BV, is engaged in acquiring, importing, manufacturing, refining and storing any and all kinds of petroleum products.