Shell Pilipinas Corp. announced that its net income grew in 2024, reversing the substantial drop in 2023.
In a disclosure to the Philippine Stock Exchange on Wednesday, March 26, Shell reported a ₱1.3-billion net income in 2024, which is an eight-percent increase compared to ₱1.2 billion in 2023.
In 2023, Shell experienced a 71-percent decline in its net income, falling from ₱4.1 billion in 2022.
Its core earnings expanded by 15 percent to ₱2.6 billion last year.
Despite the challenging market conditions faced in 2024, Shell’s performance was driven by its operational efficiencies, including operating expense (opex) savings, which reached ₱900 million.
“The savings primarily resulted from supply efficiencies, structural cost reduction across the organization, and interest avoidance,” it explained. “While overall volumes slightly declined by three percent, higher demand for premium products across key segments enabled [Shell] to grow its margins.”
Cash flow from operations stood at ₱7.2 billion; excluding the movement in working capital, it totaled ₱10.1 billion.
The company’s free cash flow had a year-on-year improvement, but it remained at a deficit of ₱1.6 billion due to higher working capital and inventory holding impact.
Meanwhile, its non-fuel retail segment posted 13-percent growth due to its lubricants, vehicle servicing, and convenience retail businesses.
“Targeted marketing initiatives further supported lubricants growth, while Shell Fleet Solutions segment attracted new customers, enhancing overall market presence,” Shell elaborated.
Lorelie Quiambao Osial, president and chief executive officer of Shell, said that the company’s strategic management and operations were fuel to the firm’s 2024 performance.
“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 will remain competitive and resilient in a dynamic and fast-paced market environment,” she added.
According to Shell, its supply chain optimization and comprehensive cost management efforts were able to save ₱200 million in opex, while lowering capital spending by ₱500 million.
Looking forward, Shell plans to focus on cash, returns, and growth for the period of 2025 to 2030.