SHELL PILIPINAS CORP. (SPC) recorded a 5.9% increase in net income to P1.25 billion for 2024 from P1.18 billion in the previous year, attributed to operational efficiencies and reduced operating expenses.
Net sales declined by 3.8% to P243.57 billion from P253.32 billion, based on the listed oil company’s financial statement released on Wednesday.
Costs and expenses decreased by 4.3% to P237.51 billion from P248.28 billion in the previous year.
“Our solid performance in FY2024 demonstrates our capability to consistently deliver value through strategic management and operational excellence,” SPC President and Chief Executive Officer Lorelie Quiambao-Osial said in a media release.
The company attributed its improved performance to operational efficiencies, including P900 million in operating expense savings — nearly half a billion higher than its target.
“The savings primarily resulted from supply efficiencies, structural cost reductions across the organization, and interest avoidance. While overall volumes declined slightly by 3%, higher demand for premium products across key segments enabled SPC to grow its margins,” the company said.
SPC’s non-fuel business grew by 13% year-on-year, driven by increased sales in lubricants, vehicle servicing, and convenience retail operations.
Its commercial business also improved, supported by growth in the construction and road (C&R) sector, lubricants, and commercial fuels.
Commercial fuel volume rose by 3%, backed by stable demand in the mining, power, and manufacturing sectors, along with successful customer acquisitions in other industries.
Lubricants volume increased by 10%, driven by higher premium penetration, new customer acquisitions, and account recoveries.
SPC said C&R remained the market leader in Bitumen, “as customers shift towards Shell’s sustainable product, Shell Bitumen FreshAir, which reduces harmful emissions by 40%.”
“We remain dedicated to strengthening our cash position, driving revenue and earnings growth, and expanding our volume across key markets. Through innovative strategies and disciplined financial management, Shell Pilipinas will remain competitive and resilient in a dynamic and fast-paced market environment,” Ms. Quiambao-Osial said. — Sheldeen Joy Talavera