Shell narrows 9-month loss to P929 million

Shell Pilipinas Corp. returned to positive core earnings in the third quarter of 2026, reducing its reported net loss for the first nine months to P929 million from P2.7 billion at the end of the first half.

The company’s year-to-date core net loss also narrowed to P1.7 billion, as improved quarterly performance helped offset disruptions earlier in the year.

Shell Pilipinas said sales volumes remained broadly stable year-on-year despite volatile market conditions. Its free cash flow stood at a P151-million deficit as of September, while gearing reached 54%.

President and CEO Lorelie Quiambao Osial said the third-quarter improvement marked progress but acknowledged that the company still needed to sustain its recovery.

“The third quarter marked an important improvement, but our nine-month results show that we still have work to do,” Osial said. “Our focus is to turn the progress achieved in the quarter into sustained earnings and cash generation.”

The company cited geopolitical tensions in the Middle East, elevated product costs and import premiums, a weaker peso, inflation and severe weather in August as factors that weighed on its performance.

Commercial Fuels volumes rose 6%, while Lubricants increased 5% and Fleet Solutions grew 2%. Mobility volumes, however, remained 3% lower year-on-year despite regaining momentum toward the end of the quarter.

Shell Pilipinas is prioritizing earnings recovery and cash generation through tighter cost management, improved supply competitiveness, working-capital discipline and profitable volume growth.

The company also expects its Cebu Import Facility, targeted for launch in the fourth quarter, to improve logistics efficiency and supply flexibility while bringing products closer to customers in the Visayas.

“Our focus is clear: strengthen earnings, restore cash generation, and build a more competitive business,” Osial said.