Shell Pilipinas Corporation (SPC) has announced strong financial results for the first quarter of 2025. Core earnings were Php 870 million, a 26% increase compared to the previous year.
Q1 Performance Highlights
Improved marketing earnings and higher premium penetration drove SPC’s robust performance. Despite external challenges, including tariff policies imposed by the US administration, the company maintained efficient operations and financial discipline. Cash flow from operations, excluding movement in working capital, reached Php 3.4 billion, though higher working capital requirements reduced net cash flow from operations to Php 190 million.
To ensure healthy free cash flow, SPC is rolling out strategic initiatives focused on prudent management of market exposures and inventory levels.
Mobility Business Growth
SPC’s Mobility segment delivered improved returns, with volumes matching the previous year’s levels. Growth was supported by B2B customer acquisitions and increased volumes with existing clients. The Shell Go+ loyalty program continued to expand, driving significant uptake of Shell V-Power products among loyalty members.
The Non-Fuel Retail (NFR) segment also grew, with Convenience Retail benefiting from targeted promotions and Alliance partnerships enhancing operating profit through new store openings.
Commercial Business Strength
SPC’s commercial businesses demonstrated steady performance across key segments:
- Commercial Fuels: Volume grew by 3%, driven by stable demand and new customer acquisitions in construction, mining, and manufacturing
- Lubricants: Volume increased by 7% year-on-year, supported by an expanded route-to-market strategy, e-commerce sales growth, and new workshops.
- Aviation: Volume rose by 5%, bolstered by new customer wins and higher uptake from existing clients.
Supply Chain Enhancement
The inauguration of a new import terminal in Southern Mindanao marked a significant milestone for SPC’s supply chain. This facility is expected to enhance competitiveness and strengthen market positions in southern regions of the Philippines.
Strategic Focus: Defend, Grow, Deliver
Shell Pilipinas remains committed to its “Defend, Grow, Deliver” strategy, which aims to generate improved shareholder value while meeting the mobility and energy needs of Filipinos. The company is focused on defending its market position, growing its businesses, and delivering on its targets to build credibility and trust among shareholders.
This strategy is supported by a winning performance culture that values customers, partners, and shareholders, driving healthy free cash flow, higher returns, and improved volume growth.
