Shell swings to P2.7 billion loss amid Mideast crisis

MANILA, Philippines — Oil giant Shell Pilipinas Corp. suffered a net loss of P2.7 billion in the first half as continued oil price volatility stemming from the Middle East conflict hammered its operations.

The loss marked a sharp reversal from the P965.3-million net income recorded in the same period last year.

Core earnings also fell into the red, with losses reaching P1.89 billion, compared with a P1.98-billion core profit a year earlier.

The company faced a steep decline in fuel marketing margins, reflecting the timing lag between rapidly rising global product costs and local market prices.

“The first half tested the resilience of energy supply chains across the industry. Our priority was clear: keep fuel available, support our customers and trade partners, and help keep the Philippine economy moving,” Shell Pilipinas president and CEO Lorelie Quiambao Osial said.

Net sales went up by 28.8 percent to P146.97 billion from P114.14 billion, driven by elevated pump prices amid the global oil crisis.

Higher fuel prices, however, also pushed up the cost of sales by 36.1 percent to P140.46 billion from P103.23 billion in the prior year.

“While these conditions materially affected earnings, improving trends in May and June reinforce our confidence in the resilience of our business as we navigate a still-volatile environment,” Osial said.

Looking ahead, Shell Pilipinas aims to return to profitability through better cost and working capital management, stronger margins and reliable supply as market conditions improve.

“As we move into the second half, our focus is to restore profitability, strengthen cash generation and further improve Shell Pilipinas’ competitiveness,” Osial said.