Shell Pilipinas Reports Net Income of Php1.3 Billion in 2024

Manila, Philippines - Shell Pilipinas Corporation (SPC) delivered robust financial results for the fiscal year 2024, reporting core earnings of Php2.6 billion, marking a 15% growth compared to the previous year. The company’s net income stood at Php1.3 billion, representing a 6% increase year-on-year despite challenging market conditions.

Strong FY24 Performance

This improved performance was fueled by significant operational efficiencies, including Php 900 million in operating expense savings - higher by almost half a billion pesos versus the target. The savings primarily resulted from supply efficiencies, structural cost reduction across the organization, and interest avoidance. While overall volumes slightly declined by 3%, higher demand for premium products across key segments enabled SPC to grow its margins.

"Our solid performance in FY2024 demonstrates our capability to consistently deliver value through strategic management and operational excellence," said SPC President and Chief Executive Officer Lorelie Quiambao Osial. "We remain dedicated to strengthening our cash position, driving revenue and earnings growth, and expanding our volume across key markets. Through innovative strategies and disciplined financial management, Shell Pilipinas will remain competitive and resilient in a dynamic and fast-paced market environment."

Cash flow from operations ended at Php7.2 billion, with cash flow excluding movement in working capital at Php10.1 billion. Free cash flow improved year-on-year but remained in deficit at Php1.6 billion, driven primarily by higher working capital and inventory holding impact.

Mobility Continues to Strengthen Customer Loyalty and NFR

Shell Pilipinas’ Mobility business maintained robust customer engagement, driven by the successful re-launch of Shell Fuel Save and the strong marketing use of Shell GO+. This contributed to sustained high loyalty volume, with a notable increase in uptake of premium Shell V-Power products among loyalty customers compared to last year.

The Non-Fuel Retail segment also grew significantly, delivering a 13% increase compared to last year. Lubricants & Vehicle Servicing, along with Convenience Retail, were key growth drivers. Targeted marketing initiatives further supported Lubricants growth, while Shell Fleet Solutions segment attracted new customers, enhancing overall market presence.

Commercial Businesses Deliver Strong Volume and Premium Product Growth

The Commercial businesses expanded throughout FY2024, particularly driven by Construction & Road (C&R), Lubricants, and Commercial Fuels. Commercial Fuels volume grew by 3%, strengthened by stable performance in the mining, power, and manufacturing sectors, alongside successful customer acquisitions in other sectors. Premium products like Shell FuelSave Diesel and Shell FuelOil Plus notably drove margin improvements.

Lubricants’ volumes increased by 10% driven by higher premium penetration, successful acquisition of new customers, and regained accounts. Shell Advance also achieved record-high volume, driven by targeted campaigns, promotions, and strategic partnerships. The launch of branded independent workshops in 2024 also significantly contributed to Lubricants’ growth.

C&R remained the market leader in Bitumen as customers shift towards Shell’s sustainable product, Shell Bitumen FreshAir, which reduces harmful emissions by 40%.

Streamlining Supply Chain Operations

Shell Pilipinas’ rigorous supply chain optimization and comprehensive cost management efforts achieved operating expense savings of Php 200 million while lowering capital spend by Php 500 million. Furthermore, effective inventory management strategies significantly avoided further losses in inventory holding, improving the company’s overall financial health.

Looking Ahead: Strategic Initiatives for 2025-2030

Shell Pilipinas will outline its strategic priorities for the period 2025-2030 focusing on Cash, Returns, and Growth.

The Company remains committed to delivering long-term value to shareholders and stakeholders through sustained operational excellence, market innovation, and prudent financial management.