MANILA, Philippines — Higher interest rates and the decrease in global oil prices deeply dented fuel giant Shell Pilipinas Corp.’s earnings as it reported a net income of P1.2 billion in 2023, a 71-percent drop from P4.1 billion in the previous year.
In a statement, Shell Pilipinas said macroeconomic factors including “elevated interest rates and decline in global fuel prices” impacted its overall profitability in the past year.
“However, the company was able to navigate through these obstacles by strategically increasing volumes and maintaining focus on premium products,” the fuel importer said.
Cash flow from operations reached P4.3 billion, excluding working capital at P9.6 billion, which the company owed to its “active” working capital management.
READ: Shell Pilipinas’ 9-month income down by more than 50% year-on-year
At the same time, Shell Pilipinas saved P900 million across the organization as it exercised “prudent” cost management.
“I’m incredibly proud of the resilience shown by our organization, delivering results amidst market pressures in 2023,” Shell Pilipinas president and CEO Lorelie Quiambao-Osial said.
“Despite external challenges, we were still able to gain higher marketing earnings while introducing new and innovative offers,” Osial added.
She added that, amid a challenging year, their marketing business achieved “a remarkable turnaround,” with delivery surging by more than 60 percent.
Also, Shell’s mobility business — mainly their network of fuel stations — attained a 4 percent increase while maintaining strong premium product penetration.
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Shell’s non-fuel retail segment grew by 13 percent, fueled by strategic partnerships with lifestyle and other brands, higher lubricants sales and a surge in food and beverage sales.
Shell Café registered a 40-percent jump in food sales and opened 13 new branches in the past year.
The company believes it is “poised for even greater success” in 2024 following a year marred by a deep plunge of the bottom line.
“By prioritizing innovation, efficiency, and solutions that put our customers first, we’re paving the way for a future that’s not only more resilient, but also more sustainable,” Osial said.