SHELL PILIPINAS’ Q1 2024 NET INCOME ZOOMS TO P1.4B

Manila, Philippines - Buoyed by focused cost discipline, supply chain efficiencies, and inventory holding gains, Shell Pilipinas Corporation’s (“SPC”) net income zoomed to PhP1.4 billion in the first quarter of 2024.

Amidst external headwinds, the company continues to be the preferred brand in the country with world-class products delivered through mobility facilities that are safe and clean, qualities that Filipino consumers have always associated with Shell. With a steadfast focus on innovation and customer-centricity, Shell gas stations are now transforming into one-stop mobility destinations designed to meet the diverse needs of its clientele.

"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,” SPC President and Chief Executive Officer Lorelie Quiambao-Osial said.

The company's focused approach to cost management contributed to its solid core earnings performance. The company maintained strong premium penetration across sectors and its non-fuels retailing business continues to deliver double digit growth.

The company significantly improved its free cash flow from negative P5.9 billion in the same period last year to positive P2.2 billion this year. This is attributable to the company’s active working capital management and value delivery on investments.

The company continues to focus and deliver on its cash generation initiatives amidst high-interest rate environment. This strategic approach reflects the company's commitment to prudent financial management and maintaining a strong balance sheet. Through these initiatives, gearing was reduced from 56% in the prior year to 53%.

Driving Sustainable Mobility Solutions

The company pursued focused growth in mobility with the opening of 10 new sites in strategic areas, further increasing its network efficiency nationwide and maximizing value for customers.

With Filipino motorists in mind, we continue to make our world-class fuels even better. Our new and improved Shell FuelSave gives gasoline users better fuel economy that helps them save up to 1 liter per full tank or travel 15 kilometers more. For diesel, that's 19 kms longer (or 1.6-liter savings) for each full tank.

 Repeat customers continue to be a driver for SPC. The company’s loyalty program - launched in 2011 - has harnessed the power of technology and digitalization through the Shell GO+ mobile app to add more exciting, rewarding and real-time experiences for our customers. In celebration of Shell’s 110 years in the country, customers received 110 bonus points for each qualified transaction.

Shell Fleet Solutions experienced significant growth in volume as the company continued securing new accounts. By expanding its client base and strengthening partnerships, Shell Fleet Solutions continues to play a pivotal role in driving overall business success for SPC.

Maintaining its vital role in the company’s strategic direction, non-fuel retail sustained double-digit growth reaching 17%. This was driven by food and beverage expansion initiatives and an ever-increasing locator business, underscoring SPC’s commitment to diversify revenue streams and enhance customer experiences.

Destination electric vehicle (EV) chargers, introduced through a strategic collaboration with Ortigas Land Corporation (OLC), mark a significant milestone in SPC’s sustainability journey. This innovative initiative entails the installation of EV chargers within OLC's malls, with Estancia Mall and Greenhills already in operation. This move is aligned with Shell and OLC's joint commitment to curbing carbon emissions and driving energy transition.

Commercial Growth and Innovation

In the commercial sector, SPC embarked on strategic initiatives to expand its clientele base, resulting in the acquisition of new customers across various industries. Moreover, the company's focused efforts led to a notable surge in the demand for premium products in the commercial fuels and lubricants segments.

Osial said, “This approach not only enhanced our market presence, but also reinforced our reputation as a preferred provider of high-quality fuel solutions tailored to meet the evolving needs of commercial clients and enable their businesses to thrive."

Lubes campaigns for Shell Advance contributed to volume growth, complemented by the launch of a new product catering to the mining industry.

Construction & Road volume grew by 16% compared to the previous year, driven by project completions and ongoing initiatives using Instapave and Bitumen Freshair.

Shell Pilipinas Corporation remains committed to driving sustainable growth, fostering innovation, and creating value for its customers, employees, and communities, guided by the Powering Progress strategy. The company’s Q1 2024 performance underscores its position as a key player in the energy industry, poised to help shape a cleaner and more sustainable energy future for the Philippines and beyond.

Osial said, “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.”