Shell Pilipinas Reports P870 Million Core Earnings for Q1 2025

Shell Pilipinas Corporation (SPC) continued its strong performance into the first quarter of 2025. The Company reported core earnings of P870 million, a 26% increase. Net income stood at P740 million, showcasing the company's operational resilience amid a highly competitive and volatile market environment.

​Q1 Performance Underscores Stability and Strength
 
The Company's overall results were driven by improved marketing earnings and higher premium penetration. Despite the pressures brought by external headwinds mainly coming from the tariff policies imposed by the US administration, SPC remained focused on efficient operations and financial discipline. Cash flow from operations excluding movement in working capital stands at P3.4 billion. However, higher working capital requirements reduced net cash flow from operations to P190 million. In line with SPC's strategic focus, multiple initiatives are being rolled out to deliver healthy free cash flow. This includes consistent and prudent management of market exposures and inventory levels.
 
Mobility: Improved Returns and Expanding Customer Loyalty
 
SPC's Mobility business grew earnings, with volumes matching previous year levels, supported by B2B growth through new customer acquisitions and increased volumes with existing customers. Loyalty membership continued to expand, aided by robust offers under the Shell G+ program. Notably, there was a significant increase in the uptake of Shell V-Power products among loyalty customers.
 
The Non-Fuel Retail (NFR) segment such as Convenience Retail and Alliance grew versus the previous year. Convenience Retail saw further increase through targeted promotions, while Alliance enhanced operating profit through the opening of new partnership stores.
 
Commercial: Steady Performance Across Key Segments
 
Shell Pilipinas' commercial businesses demonstrated continued strength. Commercial Fuels grew volume by 3%, driven by stable demand and the successful acquisition of new customers in construction, mining, and manufacturing sectors. Lubricants volume increased by 7% year-on-year, thanks to an expanded route-to-market strategy that enabled service in more remote locations and better coverage in existing areas, with promotions boosting premium penetration. Significant increase in e-commerce sales through Shopee, Lazada, and TikTok and the opening of new workshops also contributed to Lubricants' growth. Aviation posted a 5% volume increase, supported by new customer wins and higher volume uptake from existing clients, reinforcing SPC's strong presence in the aviation sector.
 
Enhancing the Supply Chain
 
The newly inaugurated import terminal in Southern Mindanao marked a significant milestone for Shell Pilipinas' supply chain. This facility is expected to enhance competitiveness and strengthen SPC's market positions in the southern regions of the country.
 
Strategic Focus: Defend, Grow, Deliver
 
Shell Pilipinas remains committed to its "Defend, Grow, Deliver" strategy. The plan focuses on generating improved shareholder value while fulfilling the mobility and energy needs of Filipinos, becoming the country's integrated energy leader. Shell stands on its commitment to DEFEND and strengthen its market position, GROW its businesses, and DELIVER on its targets to improve credibility and trust among shareholders. These will be supported by a winning performance culture, which recognizes the significant value of its customers, partners, and shareholders. This approach will be instrumental in driving healthy free cash flow, achieving higher returns, and delivering improved volume growth.