The Market Monitor Minding the Nation's Business
Shell Pilipinas Corporation (SPC) reported a net income of P1.2 billion for 2023, a remarkable turnaround from 2022, marked by more than 60% improvement in its financial performance.
SPC mirrored the country’s economic recovery, achieving a 4% volume increase while maintaining strong premium product penetration. SPC continues to hold a high position in the premium fuels and lubricants market.
“I’m incredibly proud of the resilience shown by our organization, delivering results amidst market pressures in 2023. Despite external challenges, we were still able to gain higher marketing earnings while introducing new and innovative offers,” says Shell Pilipinas President and CEO Lorelie Quiambao-Osial.
Robust Financial Delivery
Macroeconomic indicators such as elevated interest rates and decline in global fuel prices impacted the company’s overall profitability for 2023. However, the company was able to navigate through these obstacles by strategically increasing volumes and maintaining a focus on premium products.
Cash flow from operations stands at P4.3 billion, excluding working capital of P9.6 billion attributed to SPC’s active working capital management throughout the year.
Prudent cost management was exercised in the past year and the company delivered P0.9 billion savings across the organization.
Driving Mobility Forward
Shell Pilipinas continues to move the Philippines forward. Targeted marketing promotions and loyalty offers via the Shell GO+ app fueled 4% growth in Mobility volume. The company was able to secure new loyalty partners to further enhance customer experience.
Fleet Solutions – Mobility’s B2B segment – not only expanded its customer base but also partnered with them to further their decarbonization efforts through the Accelerate to Zero program.
Non-fuel retail achieved double digit growth of 13%. This was driven by strategic partnerships with lifestyle and other brands, higher lubricants sales and a surge in food and beverage sales. Shell Café doubled its coffee sales and saw a 40% increase in food sales with the addition of 13 new branches.
Pioneering Sustainable Solutions
Shell Pilipinas continued advancements in electric mobility by launching a new destination charger powered entirely by geothermal energy in collaboration with Seven/ NEO in BGC. The company’s commercial business sold carbon credits equivalent to approximately ten trees through its carbon compensation program.
In addition, the Lubricants business solidified its leadership in e-commerce platforms, while Aviation volumes increased by 12%, reflecting a recovering airline industry.
The Construction & Road segment completed several infrastructure rehabilitation projects that ensure the integrity of national roads and preservation of assets.
Building a Brighter Energy Future
Looking ahead, SPC is poised for even greater success alongside the country’s projected growth in 2024.
“At Shell Pilipinas, we are committed to being a driving force in the Philippines’ energy sector. By prioritizing innovation, efficiency and solutions that put our customers first, we are paving the way for a future that is not only more resilient, but also more sustainable,” Quiambao-Osial said.