Shell Pilipinas Corp. delivered the kind of first-quarter profit jump investors typically cheer. Net income more than doubled to ₱1.62 billion in the three months ended March 2026 from ₱743.6 million a year earlier, as revenue climbed and the company booked gains from a sharp rise in oil prices. Look closer, though, and the quarter tells a more complicated story. The Philippine fuel retailer’s headline earnings were boosted by inventory holding gains and commodity hedging gains after the Middle East crisis sent oil prices sharply higher in March. But the same price surge also exposed a weaker underlying business: core earnings plunged 87.6% to ₱107.8 million from ₱871.4 million a year earlier, as fuel marketing margins were squeezed by price-lag losses. That divergence — strong reported profit, weak recurring profit — makes Shell Pilipinas’ first-quarter results a study in how oil-market volatility can flatter earnings while pressuring the day-to-day economics of selling fue...
Petron Corp. sold more fuel at higher prices in the first quarter. The trouble was that every peso of sales bought shareholders less profit. The Philippines’ largest oil company reported a 27% jump in first-quarter revenue to ₱246.0 billion , boosted by higher sales volume and surging fuel prices after the Israel-U.S.-Iran conflict roiled global oil markets. Sales volume rose 13% to 34.62 million barrels , helped by stronger trading transactions, resilient retail demand and LPG growth. But the top-line strength masked a sharp deterioration underneath: gross profit fell 22% to ₱10.52 billion , operating income dropped 36% to ₱6.06 billion , and consolidated net income slumped 56% to ₱1.78 billion . The result was a quarter that looked big in nominal terms but thin in economic substance. Petron sold more and sold at higher prices, yet earned materially less per peso of sales. Its gross margin narrowed to 4.3% from 6.9% a year earlier , a decline of about 266 basis points , as cost o...