Shell Pilipinas Corp. (SPC) said it posted a net loss of P2.7 billion in the first half, a reversal of last year’s P970-million net income, due to inventory losses, compressed margins, and soft demand.
‘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,’ said Lorelie Quiambao Osial, president and CEO of Shell Pilipinas.
During the period, the oil firm generated P2.4 billion in free cash flow driven by strong liquidity and supply reliability despite significant market volatility.
‘By leveraging Shell’s global trading and supply network, local infrastructure, and strong customer relationships, we maintained reliable supply through one of the most volatile market environments in recent years.
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,’ added Osial.
The oil firm said it faced ‘severe’ margin compression and a net loss due to the Middle East conflict-driven oil price volatility and a weak peso. Despite these, Shell Pilipinas said it maintained fuel availability by leveraging its integrated supply chain and active government coordination.
While high prices caused a 4 percent decline in mobility volumes, commercial fuels saw a 4-percent growth, while lubricants provided stable earnings.
‘As we move into the second half, our focus is to restore profitability, strengthen cash generation, and further improve Shell Pilipinas’ competitiveness. The actions we have taken position us to continue serving the country’s energy needs while creating long-term value for our shareholders,’ Osial added.
Last March, SPC said its net income soared by 69 percent year-on-year to P2.1 billion in 2025 due to higher sales. Its core earnings jumped 28 percent year-on-year to P3.3 billion.
The country’s second largest oil firm also ended 2025 with a free cash flow of P2.1 billion, reversing the P1.6-billion deficit it recorded in the previous year.
Income from operations also went up to P6.46 billion from P6 billion.
SPC’s fuels business delivered a 2-percent volume growth for the full year, supported by stronger contributions from B2B and commercial segments, a ‘healthier’ product mix, and ‘more efficient’ supply chain.