Shell Pilipinas Corp. (SPC) concluded 2023 with a net income of P1.4 billion, despite facing a challenging year marked by economic fluctuations and declining global fuel prices. The company’s marketing business saw a significant turnaround, with deliveries increasing by over 60% compared to 2022.
The Mobility business experienced a 4% volume increase, bolstered by strong premium product penetration.
“Despite external challenges, we were still able to gain higher marketing earnings while introducing new and innovative offers,” said Lorelie Quiambao-Osial, president and CEO of Shell Pilipinas.
SPC continued to advance in electric mobility, launching a destination charger powered entirely by geothermal energy in collaboration with Seven/NEO in BGC. The commercial business contributed to environmental efforts by selling carbon credits equivalent to approximately ten trees through its carbon compensation program.
Macroeconomic factors, including elevated interest rates and a decline in global fuel prices, had an impact on the company’s overall profitability. However, SPC navigated these challenges by strategically increasing volumes and maintaining a focus on premium products. Cash flow from operations stood at P4.3 billion, excluding working capital at P9.6 billion, due to active management throughout the year. Prudent cost management yielded PHP0.9 billion in savings across the organization.
Mobility
Targeted marketing promotions and loyalty offers via the Shell GO+ app fueled a 4% growth in Mobility volume. The company also secured new loyalty partners to enhance customer experience. The Fleet Solutions segment expanded its customer base and partnered with clients to support their decarbonization efforts through the Accelerate to Zero program.
Non-fuel retail achieved 13% growth, driven by strategic partnerships, higher lubricant sales, and increased food and beverage sales. Shell Café doubled its coffee sales and saw a 40% increase in food sales with 13 new branches. The Lubricants business solidified its e-commerce leadership, while Aviation volumes increased by 12%, reflecting a recovering airline industry. The Construction & Road segment completed several infrastructure rehabilitation projects, ensuring the integrity of national roads and asset preservation.