Shell Pilipinas Corp. reported a 53.5 percent decline in its nine-month net income for the first three quarters of the year, amounting to P2.054 billion, attributed to lower sales and increased expenses.
In its financial report to the stock exchange, SPC noted that net sales decreased by P22.988.5 billion, or 10.8%, to P190.264 billion due to lower pump prices resulting from a general downturn in global oil prices.
Gross profit also slipped 19.7% o P16.364 billion, primarily due to the decrease in global oil prices.
SPC’s core earnings (net earnings excluding inventory holding gains and other one-off items) fell by P237.9 million to P1.602 billion as of the end of September 2023. This decrease was driven by a substantial increase in borrowing costs as interest rates tripled from the first quarter.
Meanwhile, SPC remains bullish about its operations after third quarter net income reached P1.93 billion, representing a recovery from a P3.358 billion net loss in the same period last year.
“We are excited about the growth of our non-fuels retail business, helping to increase foot traffic and diversify our portfolio. This growth is driven by our strong brand recognition, our convenient locations, our innovative product offerings for fuel and non-fuel retail customers, and of course, our retailers and forecourt service champions,” said SPC President Lorelie Quiambao-Osial.