SPC anticipates strong 2024 growth

CEBU, Philippines — Along with the anticipated growth of the Philippines in 2024, Shell Pilipinas Corporation (SPC) anticipates a strong year ahead, propelled by its serious adoption of innovation, efficiency, and consumer-centric solutions.

“At Shell Pilipinas, we are committed to being a driving force in the Philippines’ energy sector,” said Shell Pilipinas’ president and chief executive officer (CEO) Lorelie Quiambao-Osial in a press briefing.

SPC concluded 2023 with a net profit of P1.2 billion, showcasing resilience in the face of a challenging year.

The marketing sector witnessed a notable revival in 2023, experiencing a surge in deliveries exceeding 60 percent compared to the previous year.

The mobility business mirrored the country’s economic activity, achieving a four percent volume increase while maintaining strong premium product penetration. Shell Pilipinas 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,” noted Osial

Macroeconomic factors such as elevated interest rates and a decline in global fuel prices impacted the company’s overall profitability in 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 at P9.6 billion attributed to the Company’s active working capital management throughout the year.

Prudent cost management was exercised in the past year and the company delivered PHP0.9 billion savings across the organization.

Shell Pilipinas continues to move the Philippines forward. Targeted marketing promotions and loyalty offers via the Shell GO+ app fueled four percent growth in Mobility volume.

The company was able to secure new loyalty partners to further enhance customer experience.

Fleet Solutions, Mobility’s B2B (business-to-business) 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 percent. 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 40percent 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 (Bonifacio Global City).

The company’s commercial business sold carbon credits equivalent to approximately 10 trees through its carbon compensation program.

In addition, the Lubricants business solidified its leadership in e-commerce platforms, while Aviation volumes increased by 12 percent compared to the previous year reflecting a recovering airline industry.

The Construction & Road segment completed several infrastructure rehabilitation projects during the year that will ensure the integrity of national roads and the preservation of assets. — (FREEMAN)