Shell Pilipinas Reports Net Income of P1.3 Billion in 2024

​Shell Pilipinas Corporation (SPC) delivered robust financial results for the fiscal year 2024, reporting core earnings of P2.6 billion, marking a 15% growth compared to the previous year. The company's net income stood at P1.3 billion, representing a 6% increase year-on-year despite challenging market conditions.

​This improved performance was fueled by significant operational efficiencies, including P900 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 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 P7.2 billion, with cash flow excluding movement in working capital at P10.1 billion. Free cash flow improved year-on-year but remained in deficit at P1.6 billion, driven primarily by higher working capital and inventory holding impact.

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, whle Shell Fleet Solutions segment attracted new customers, enhancing overall market presense.

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 notable 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 launches of branded independent workshops in 2024 also significantly contribute 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%.

Shell Pilipinas' rigorous supply chain optimization and comprehensive cost management efforts achieved operating expense savings of P200 million while lowering capital spend by P500 million. Futhermore, effective inventory management strategies significantly avoided further losses in inventory holding, improving the company's overall financial health.

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.