Shell Pilipinas profits falls 71% in 2023

Fuel giant Shell Pilipinas Corp. saw net income in 2023 plummet by 71 percent to Php1.2 billion on weaker sales and heightened borrowing costs, alongside losses from inventory holdings due to fluctuating global oil prices.

In its latest annual report, Shell also detailed attempts to recover through improved marketing strategies, however, increased finance expenses overtook potential gains, dragging down its core income by 18.2 percent to P2.31 billion. 

The company also faced an 11.3 percent earnings before interest, taxes, depreciation, and amortization decrease. 

This was mainly due to a shift from pre-tax inventory holding gains in 2022 to losses in 2023, reflecting the challenging global economic landscape's impact on local businesses.