Shell Pilipinas Corp. allocated a capital expenditure (capex) budget of P2 billion to P3 billion this year to boost its retail network and increase terminal efficiency.
“About 50 percent of that [capex] will be dedicated in improving the asset integrity and the efficiency of our terminals across the country, particularly our main one which is the Tabangao import facility,” said Shell Pilipinas treasurer, vice president for finance and chief risk officer Rey Abilo during the company’s annual stockholders’ meeting.
He said the remaining 50 percent of the capex would go towards enhancing the company’s mobility footprint.
“We ended 2023 with a total of 1,179 mobility stations, and we are planning to increase our mobility sites by about 20 to 25 stations this year,” Abilo said.
Shell Pilipinas closed 2023 with a net income of P1.2 billion, demonstrating the company’s resilience amid a challenging year. Its marketing business achieved a remarkable turnaround in 2023, with delivery up by over 60 percent from 2022.
Shell Pilipinas’ mobility business mirrored the country’s economic activity last year, achieving a 4-percent volume increase while maintaining strong premium product penetration as it continues to hold a high position in the premium fuels and lubricants market.
Targeted marketing promotions and loyalty offers via the Shell GO+ app fueled the growth in mobility volume. The company said, however, macroeconomic factors such as elevated interest rates and decline in global fuel prices impacted the company’s overall profitability in 2023.
Shell Pilipinas was able to navigate through these obstacles by strategically increasing volumes and maintaining a focus on premium products.
Cash flow from operations reached P4.3 billion, excluding working capital at P9.6 billion, attributed to the company’s active working capital management throughout the year.
The company exercised prudent cost management in 2023, delivering P900 million in savings across the organization.