Shell Pilipinas Corp. (SPC) on Wednesday reported a net income of P1.25 billion in 2024, up 5.75 percent from P1.182 billion in 2023 on the back of operational efficiencies despite lower revenues.
The company said in a disclosure to the stock exchange its revenues amounted to P243.565 billion in 2024, down 3.85 percent from P253.316 billion in 2023.
Shell said, however, core earnings reached P2.6 billion, marking a 15-percent growth compared to the previous year’s.
The company said the improved financial performance last year was fueled by significant operational efficiencies, including P900 million in operating expense savings, higher by almost P500 million versus the target.
It said the savings resulted from supply efficiencies, structural cost reduction across the organization and interest avoidance.
Shell said effective inventory management strategies avoided further losses in inventory holding, improving the company’s overall financial health.
The company reported lower cost and expenses to P23.508 billion last year, from P248.277 billion in 2023.
Shell said that while overall volumes slightly declined 3 percent, higher demand for premium products across key segments enabled SPC to grow its margins.
“Our solid performance in FY 2024 demonstrates our capability to consistently deliver value through strategic management and operational excellence,” said SPC president and chief executive Lorelie Quiambao Osial.
“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 Pilipinas will remain competitive and resilient in a dynamic and fast-paced market environment,” she said.