Listed oil giant Shell Pilipinas Corp. overcame external headwinds in the first quarter of the year as it successfully raked in a net income of P1.4 billion — a turnaround from P310.2 million net loss in the same period last year.

"We are making strategic choices to strengthen our market position, boost business resilience, and drive financial strength. We will win every day and win together with our motivated workforce, business partners, and the best retailer network in the country," Shell Pilipinas president and CEO Lorelie Quiambao-Osial said on Wednesday. 

Shell Pilipinas reported a gross profit surge of 37 percent to P6.1 billion from January to March driven by inventory holding gains from the uptrend in global fuel prices. 

This was despite an 8.2 percent decline to P60 billion due to "lower marketing volumes."

As of the end of March, Shell Pilipinas sold 941.2 million liters of fuel, a decrease of 10.8 percent while marketing volumes dropped by 10.7 percent to 932 million liters.

Cost of sales also went down by 11.5 percent to P53.8 billion while selling, general, and administrative expenses slid by 12.5 percent to P3.7 billion.

Shell Pilipinas also said its free cash flow "significantly improved" from negative P5.9 billion to positive P2.2 billion due to active working capital management and value delivery on investments.

According to Osial, Shell Pilipinas prioritized cost management during the quarter which led to the solid performance of its core earnings. 

"As we evolve in an increasingly competitive industry, Shell Pilipinas remains steadfast in delivering value to our shareholders fueled by our refreshed strategy, strong focus on performance, and disciplined delivery," Osial said.

During its annual stockholders meeting on Tuesday, Shell Pilipinas announced a capital expenditure of P2 billion to P3 billion to bankroll terminals and mobility footprint expansion.

As of end-2023, the oil company has 1,179 mobility stations nationwide.