Shell Pilipinas Corporation (SPC) posted a 15% increase in core earnings to PHP 2.6 billion in 2024, driven by stronger margins and operating cost efficiencies, despite a 3% drop in fuel volumes. Net income rose by 6% to PHP 1.3 billion, buoyed by core earnings growth and an improved inventory position, offset partly by the one-off impact of asset high-grading in its Mobility unit. Free cash flow stood at a deficit of PHP 1.66 billion—still negative, but a marked 79% improvement over the PHP 7.7 billion deficit in 2023.
President and CEO Lorelie Quiambao Osial highlighted improved operational fundamentals: “This is the highest CFFO delivered by SPC since 2018 and was achieved through earnings growth, sustained capital discipline, and optimized venture levels.”
SPC’s cash flow from operations surged to PHP 7.5 billion, up from PHP 4.3 billion in 2023. Retained earnings available for dividend declaration reached PHP 1.4 billion.
Commercial segments led the growth charge, with commercial fuels recording record-high earnings and 3% volume growth. SPC also maintained its market leadership in the power, manufacturing, and mining sectors. Lubricants volume rose 10%, backed by an effective route-to-market strategy and rising e-commerce sales.
“In 2024, our mobility business faced a challenging start due to hypercompetition and price sensitivity across the market. Through more competitive pricing combined with targeted marketing campaigns and promotions, we were able to slow down volume decline,” Osial said.
The Mobility portfolio closed the year with 22 new stations opened and 53 closed, bringing the total to around 1,150. Shell Select stores now total 230, with five added in 2024. The non-fuel retail segment continued its strong year-on-year momentum.
Looking ahead, Osial said, “2025 will be characterized by our strong focus on three things: that’s cash, returns, and growth. Where we have been successful and achieved a positive trajectory in 2024, we will build on that.”
Executive Director and CFO Reynaldo Abilo emphasized capital discipline as a continuing priority: “We will continue our disciplined approach in terms of capitals in the next 2 years. We will be investing into CapEx, between PHP 2–3 billion per year, equally split between our mobility business and our supply chain.”
What are your thoughts on Shell Pilipinas’ 2024 performance and its strategic focus for 2025? How do you see the company faring amid ongoing market challenges? Join the discussion.
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