Pilipinas Shell rolls out 5-year strategy plan
Apr 07, 2021
Following the challenges of the previous year, Pilipinas Shell Petroleum Corporation, a marketing-led energy company supported by a world-class supply chain with 107 years of experience in the Philippines, is re-focusing its business to ensure it is well-positioned to meet the country’s energy and mobility requirements as the economy recovers from the pandemic. This approach, which will advance the development of low-carbon operations, will further drive shareholder value and help determine the energy future of the Philippines.
“The company is strongly positioned to meet the resulting recovery of energy demand as well as the growth in consumer spending,” Pilipinas Shell President and CEO Cesar Romero said. “Moreover, we intend to do our share in contributing towards Royal Dutch Shell’s aspirations to be a net-zero carbon business by 2050.”
Investors seeking stable dividends can rely on Pilipinas Shell’s strong footprint and history in the Philippines, robust marketing strategies with industry-leading innovations supported by a world-class supply chain, integration with and movement towards lower carbon operations, strong corporate governance, world-class talents, and attractive dividend policy.
In the next five years, Pilipinas Shell will have three major changes in its strategic priorities. First is transforming its supply chain from manufacturing to full importation; second is changing its business model from retail to mobility; and third is shifting to lower carbon operations and introducing lower carbon products and services.
Tabangao transformation: from refinery to import facility
The transformation of the Tabangao refinery facility into a full import facility has enabled Pilipinas Shell to focus on improving its efficiency and operational standards.
The refinery’s conversion has likewise reduced capital and operational expense exposure, lessened vulnerabilities to variability and product pricing, and brought about growth.
World-class supply chain
The company’s decision to shift from a manufacturing supply chain to a full import supply chain is part of its strategy to enhance the affordability and reliability of its supply chain, keep it customer-centric and make it truly world-class. Its tank farm, shipping, and road transport assets offer flexibility and have proven their resilience to changes in the market. Finally, its facilities are capable of handling a broad range of vessels, and operate in a safe and environmentally considerate manner.
From retail to mobility stations
To better serve the needs of the Filipino consumers, Pilipinas Shell’s retail business model is shifting from a gas station to a mobility site, which will not only cater to cars and standard vehicles, but will also have offers in e-mobility for cyclists and pedestrian customers.
Pilipinas Shell aims to build 60-80 new sites per year to reach its overall target of having 1,500 mobility sites by 2025, achieving its goal to grow alongside the Philippine economy by increasing fuels volumes by ~4% per year and convenience retail profits by ~15 percent per year,” Romero said.
Step by step towards low carbon operations
As the world adapts to climate change, Pilipinas Shell is gearing up to innovate low carbon and carbon offset products while shifting to low carbon operations. It is committed to lead the national energy industry towards a low carbon footprint by implementing cutting-edge technology and the expertise of its workforce.
“We are making the necessary changes to ensure the future of energy for Filipinos and help the Philippines move forward. We are confident about driving fuel mobility and getting the country back on track as it recovers from the impact of the pandemic,” says Romero.
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