Shell Pilipinas Corp. (SPC), an energy company, reported a net income of P123 million in the first half of the year, recovering from losses in the previous quarter. The loss is attributable to fluctuating oil prices and higher interest rates.
SPC’s core earnings for the first half of the year reached P1.4 billion, thanks to a rebound in its marketing business. The company saw a 9% increase in total marketing volume and growth in premium products across key sectors. Non-fuel retail (NFR) also grew by 14% compared to last year, and it’s 33% higher than before the pandemic. However, these achievements were affected by the challenges mentioned earlier.
“We have built momentum and we will finish strong in 2023 with exceptional customer experience and continued innovation in serving our growing customer base with world-class Shell products and services,” Lorelie Quiambao-Osial, president and CEO, SPC.
In the mobility business, SPC’s targeted marketing efforts, driven by its premium fuel Shell V-Power, led to a 9% increase in total volume delivery. Premium fuel, lubricants, and bitumen products also maintained strong penetration. The company opened seven new sites in the second quarter, totaling 14 new mobility destinations for the year. These expansions contributed to the 14% growth in the NFR business.
The commercial B2B sectors also performed well, with a 10% increase in sales volume compared to the previous year. Aviation sales volume grew by 39%, and Commercial Road Transport more than tripled. The lubricants business achieved a 5% increase due to new product launches and e-commerce solutions.
SPC launched the Lube Recycle program to promote proper plastic management and recycling, aligning with the country’s Extended Producer Responsibility law. In the first quarter of 2023, the company reduced carbon emissions by shifting to renewable energy sources and optimizing transport scheduling.