Shell Pilipinas Corporation (SPC) has reported a net income of PHP 1.3 billion for fiscal year 2024, a 6% increase from the previous year. The company’s core earnings reached PHP 2.6 billion, reflecting a robust 15% growth, driven by operational efficiencies and a surge in demand for premium products. This performance, announced in a press release filed with the Securities and Exchange Commission on March 26, 2025, underscores SPC’s resilience and strategic focus amid a slight 3% decline in overall sales volumes.
A standout factor in SPC’s success was its ability to slash operating expenses by PHP 900 million—nearly half a billion pesos above its target. These savings stemmed from supply chain optimizations, structural cost reductions, and interest avoidance.
“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. She emphasized the company’s commitment to “strengthening our cash position, driving revenue and earnings growth, and expanding our volume across key markets.”
The Mobility business played a pivotal role, with the re-launch of Shell Fuel Save and the Shell GO+ loyalty program boosting customer engagement. Premium Shell V-Power products saw increased uptake among loyalty customers, while the Non-Fuel Retail segment grew by 13%, propelled by Lubricants, Vehicle Servicing, and Convenience Retail.
Meanwhile, Commercial businesses shone with a 3% volume increase in Commercial Fuels and a 10% jump in Lubricants volumes, the latter aided by new customer acquisitions and the launch of branded independent workshops.
SPC’s supply chain streamlining delivered additional savings of PHP 200 million in operating expenses and cut capital spending by PHP 500 million. The Construction & Road segment retained market leadership in Bitumen, with growing adoption of the eco-friendly Shell Bitumen FreshAir, which reduces harmful emissions by 40%.
Financially, cash flow from operations hit PHP7.2 billion, though free cash flow remained in deficit at PHP 1.6 billion due to higher working capital and inventory costs. Looking ahead, SPC is set to unveil its 2025-2030 strategy, prioritizing cash flow, returns, and growth to ensure long-term value for stakeholders.
What do you think about Shell Pilipinas’ strategy of balancing cost-cutting with premium product growth? Share your thoughts below—how can companies in volatile markets stay competitive while meeting sustainability goals? Let’s get the discussion going!
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