Shell Pilipinas Corp. on Wednesday reported a net income of P1.4 billion in the first quarter of 2024, a turnaround from the P310-million net loss it suffered in the same period last year.
The company said its significant recovery in the first three months was due to its focused cost discipline, supply chain efficiencies and inventory holding gains.
Revenues, however, were lower at P59.95 billion, compared to P65.61 billion in the same period last year on lower sales volumes.
“We are making strategic choices to strengthen our market position, boost business resilience and drive financial strength. We will win every day and win together with our motivated workforce, business partners and the best retailer network in the country,” Shell Pilipinas president and chief executive Lorelie Quiambao-Osial said.
Shell Pilipinas said that amid external headwinds, the company continued to be the preferred brand in the country with world-class products delivered through safe and clean mobility facilities.
Shell gas stations, with focus on innovation and customer-centricity, are now transforming into one-stop mobility destinations designed to meet the diverse needs of its clientele.
“As we evolve in an increasingly competitive industry, Shell Pilipinas remains steadfast in delivering value to our shareholders fueled by our refreshed strategy, strong focus on performance, and disciplined delivery,” Quiambao-Osial said.
The company significantly improved its free cash flow from negative P5.9 billion in the same period last year to positive P2.2 billion this year. This was attributed to the company’s active working capital management and value delivery on investments.
Shell Pilipinas said the company continues to focus and deliver on its cash generation initiatives amidst high-interest rate environment. This strategic approach reflects the company’s commitment to prudent financial management and maintaining a strong balance sheet.
The company pursued focused growth in mobility with the opening of 10 new sites in strategic areas, further increasing its network efficiency nationwide and maximizing value for customers.
Shell Fleet Solutions experienced significant growth in volume as the company continued securing new accounts. By expanding its client base and strengthening partnerships, Shell Fleet Solutions continues to play a pivotal role in driving overall business success for SPC.
The non-fuel retail sustained a double-digit growth of 17 percent, driven by food and beverage expansion initiatives and an increasing locator business, underscoring SPC‘s commitment to diversify revenue streams and enhance customer experiences.
