Shell Pilipinas Corporation Reported P1.7 Billion in Net Income in H1-2024

Shell Pilipinas Corporation (SPC) posted a net income of P1.7 billion for the first half of 2024, fueled by improved profitability from marketing businesses, better cash management, and inventory holding gains. This was slightly dampened by the high interest rate environment and Peso depreciation as the Peso weakened to a high of P58.9/USD in the second quarter.

​For 110 years, SPC has been a trusted partner of Filipinos, consistently delivering high-quality products and world-class services to its customers. Even in the face of external challenges, the Company has solidified its high brand preference among Filipino customers.

“Our strong first-half performance underscores our resilience and ability to deliver value even in a challenging economic environment. Guided by our refreshed strategy, we’re exploring new ways to grow both volume and value that will enable us to provide attractive returns to our shareholders,” said SPC President and Chief Executive Officer Lorelie Quiambao-Osial.

A significant contributor to the company's bottom line was the successful implementation of cost-saving initiatives and supply chain efficiencies. This resulted in operating expense savings and interest rate avoidance of P0.4 billion, nearly reaching its P0.5 billion commitment for the full year.

The Company also realized high premium penetration in Mobility and increased premium products sales across its B2B segment, which helped temper the impact of the hypercompetitive industry during the first half of the year. This success is attributed to a series of targeted marketing campaigns and promotions, which attracted new customers while increasing the basket size of existing patrons.

The Company's financial health was further strengthened as it continued its active working capital management and controlled spending, delivering free cash flow (FCF) net of interest expense of positive P1.1 versus the prior year’s negative P7.5 billion. In addition, capital expenditures were strategically reduced by P2 billion versus the same period last year as the Company sharpened its focus on high-yielding projects. All these initiatives reduced gearing from 57% to 54%.