Shell Pilipinas Outperforms in 1H25, Posting Php2 Billion Core Earnings and Php5 Billion FCF Turnaround

Manila - Shell Pilipinas Corporation (PSE: SHLPH) (“SPC” or “the Company”) reported core earnings of Php2 billion for the first half of 2025, beating the same period last year by 38%. Net income reached Php970 million, while free cash flow turned around to Php5 billion, further strengthening the balance sheet and reducing gearing to 51%.

Performance was underpinned by higher sales and a balanced product mix across price points—including premium offers—supported by disciplined pricing, stronger loyalty-driven engagement, and supply-chain efficiency. By integrating supply chain capabilities with retail and commercial channels, SPC is accelerating growth across multiple segments, ensuring the right products reach customers nationwide with greater speed and efficiency. These levers helped cushion the impact of ongoing market volatility.

“We are on track with our Defend, Grow, Deliver strategy and in its disciplined execution amid external headwinds,” said Lorelie Quiambao Osial, President and CEO of Shell Pilipinas. “Our strong free cash flow, core earnings growth, and improved gearing reflect not only our long-term strategic focus but also the tangible short- to medium-term gains we’re delivering. These results show how strategy, discipline, and agility are enabling us to create sustained value—while navigating an ever-changing and volatile environment.”

Fuels Business Holds Firm Amid Hypercompetition; Fleet and Loyalty Drive Gains

SPC’s fuels business maintained stable volumes year-on-year, supported by steady performance in Mobility, which remains the second-largest player in the downstream oil sector. Fleet Solutions posted 18% volume growth, while Non-Fuel Retail (NFR) and Convenience Retail posted 5% growth, respectively—backed by targeted campaigns and rising adoption of Shell Go+, Shell Select, and Shell Café.

Shell Go+ continues to be among the most widely adopted fuel loyalty programs in the country, setting the pace in digital customer engagement. Membership rose 17% in the first half, and SPC is in the midst of a platform refresh, with the updated Shell Go+ app now live this quarter. The upgrade is designed to drive stronger user interaction and deeper brand loyalty, making Shell Go+ a critical lever in the Company’s long-term customer value strategy.

SPC also accelerated its EV mobility agenda through its partnership with Evro, the country’s first brand-neutral e-Mobility service provider. SPC has integrated Shell Recharge into Evro’s digital platform, giving EV drivers quick, app-based access to over 30 charging points across Shell stations, retail hubs, and commercial centers. The collaboration streamlines station discovery, seamless payments, and trip planning, reinforcing SPC’s role in energy transition and in delivering more convenient charging experiences for customers.

In Commercial Fuels, SPC secured new accounts across the Construction and Manufacturing sectors, with significant volume growth in Shell FuelSave Diesel (+17%), Shell Fuel Oil Plus (+7%), and Industrial Fuel Oil (17% of total volume). Meanwhile, Aviation posted an 11% volume increase, with earnings improving year-on-year as travel activity continues to recover.

Lubricants from Non-Fuels Business Outperform as E-Commerce and Premium Shift Accelerate Growth

The Non-Fuels segment, composed of Lubricants and Bitumen, continued to expand its market footprint. Lubricants posted 6% volume growth, driven by new distribution partnerships, a continued shift toward premium products, and stronger partnerships with leading automotive brands. E-commerce sales tripled year-on-year, with strong demand across platforms like Lazada, Shopee, and TikTok, supported by effective digital conversion campaigns.

The Company also expanded its after-sales footprint with the launch of its first-ever flagship auto workshop model which is a fully branded Shell-exclusive service center. It is now operating in three locations, with over 10 sites expected by year-end. These service centers strengthen customer loyalty and brand visibility through high-quality Shell Helix and Shell Advance offerings.

Meanwhile, the Bitumen business demonstrated resilience following a temporary pause in public infrastructure activity during the first quarter. Volumes began recovering in the second quarter, signaling renewed momentum as infrastructure activity resumed. SPC continues to support the country’s most critical road developments across highways, airports, and industrial zones.

Davao Import Facility Boosts Mindanao Sales and Network Efficiency

Trading and Supply (T&S) operations remained on track and efficiently optimized costs across the value chain. A key enabler is the recently inaugurated Davao Import Facility (DIF), which has strengthened Shell Pilipinas’ market position in South Mindanao, resulting in higher regional sales volumes. Leveraging integrated supply chain capabilities, T&S is advancing growth that positions the Company’s current network to better capture opportunities and serve customers more effectively.

SPC’s Commitment to Deliver on its Strategic Priorities

Shell Pilipinas remains firmly focused on delivering its Defend, Grow, Deliver strategy. As it executes its 2025 roadmap, the Company is committed to DEFEND its volumes and market share, GROW its businesses, and DELIVER on its external commitments.

As part of one of the most recognized energy brands in the world, SPC leverages Shell’s global leadership—the world’s No. 1 mobility retailer and the top global lubricant supplier, delivering market-leading products to consumers in over 100 countries. This global foundation continues to reinforce the Company’s strong performance across key segments.

This collective drive will continue to propel Shell Pilipinas forward as it focuses on sustainable profitability and best-in-class customer experience, delivering long-term value while meeting the evolving mobility and energy needs of Filipinos.