Shell Pilipinas turns around performance, delivers P2.1bn net income by end of Q3
Nov 14, 2023
Shell Pilipinas Corporation (SPC) posted a net income of P2.1 billion for the first nine months of 2023, a significant improvement from the P123 million recorded during the first half of the year. This was attributed to sustain overall volumes growth, increase in premium product penetration, and inventory loss reversal.
“We took action to ensure recovery and were able to successfully generate higher earnings compared to the first half of 2023." said Lorelie Quiambao-Osial, Shell Pilipinas Corporation’s President and Chief Executive Officer (CEO).
Mobility benefits from growth levers in Q3
Shell Pilipinas delivered 30 new mobility sites combined with targeted mobility-related activities, driving growth across various sectors of the business. Fuels volume is up by 7%, credited to successful marketing promotions and loyalty offers facilitated through the Shell Go+ app. Enhancing customer experience is one of SPC’s priorities and this is carried out through improvement of its mobile applications. The recently launched Shell Fleet App was recognized as a digital solution addressing the unique needs of small and medium entities and streamlines the fleet card application process while offering a transition to cashless fuel management system.
SPC also renewed its partnership with Citibank (through UnionBank) to relaunch the Shell Citi Card. This is by far the longest co-branding relationship in the industry, celebrating 25 years of strong partnership and counting. This collaboration offers one of the highest rebates in the industry, further enhancing customer satisfaction and loyalty.
Non-fuels retail continues to deliver double-digit growth as it posted a 14% increase vs 2022. The introduction of new Shell Café branches and the expansion of Shell Select stores, Select Express, Deli2Gos, and Shell Helix Oil Change Centers nationwide contributed to this growth. Last quarter, Mobility introduced its first Shell Café drive-through in the country.
“We are excited about the growth of our non-fuels retail business, helping to increase foot traffic and diversify our portfolio. This growth is driven by our strong brand recognition, our convenient locations, our innovative product offerings for fuel and non-fuel retail customers, and of course, our retailers and forecourt service champions,” Quiambao-Osial adds.
Growth and partnerships empower various PH sectors
Shell Pilipinas has shown remarkable growth and strengthened partnerships in the Commercial sector. With substantial growth in Commercial Road Transport and a 23% volume growth in the aviation sector, the company remains a strong player in various sectors, maintaining brand preference through innovative product launches and engaging campaigns.
Moreover, the company is dedicated to advancing its sustainability agenda, offering integrated cross-business solutions to industry, local government, and sector-customers. By leveraging its expertise and resources, Shell Pilipinas continues to drive positive change and contributes to a more sustainable future.
Strategically enhancing the supply chain
As part of the 2021 strategy, Shell Pilipinas is preparing to open an import terminal with a capacity of 60 million liters in Cebu. This terminal will cater to the mobility stations and nearby areas, enhancing the delivery capabilities of both Mobility and Commercial businesses. Notably, this facility will further solidify Shell Pilipinas' commitment to provide more and cleaner energy solutions.
Celebrating a milestone in corporate governance
Furthermore, the company has recently received the prestigious Golden Arrow Award from the Institute of Corporate Directors. As a top Philippine Publicly Listed Entity, Shell Pilipinas has excelled in corporate governance and performance, demonstrated by its exceptional performance against the ASEAN Corporate Governance Scorecard. This esteemed honor reflects Shell Pilipinas' relentless pursuit of excellence, transparency, and accountability.
“We are committed to leveraging our expertise and resources to drive positive change and contribute to a more sustainable future for the Filipino people. We will continue to invest in our supply chain, innovate and expand our product offerings, and partner with stakeholders to move the Philippines forward,” Quiambao-Osial said.
Shell Pilipinas Corporation: Powering Progress, Empowering Filipinos
Shell Pilipinas is dedicated to powering progress in the Philippines. The company is looking at short- and long-term strategies to profitably, efficiently and effectively provide more and cleaner energy solutions to the Filipino. This includes diversifying customer-centric offers, further optimizing operations and maximizing assets.
Shell Pilipinas is refreshing its strategy, with a focus on recovering a strong earnings, cash and dividend-paying position, remaining a major player in the energy industry, and partnering in nation building.
With its unwavering commitment and focus on performance, discipline, and simplification, Shell Pilipinas aims to create a sustainable and prosperous future for the Filipino people.
Expanding the boundaries of innovation, Shell Pilipinas introduced the Shell Cafe Drive Thru, a testament to their unwavering commitment to customer service. This exciting new venture echoes the robust growth seen in the first nine months of 2023.