Shell Pilipinas Corp. (SPC) is pressing ahead with a disciplined investment strategy, committing between P2 billion and P3 billion annually in capital expenditures for 2025 and 2026, despite posting a steep 47.1 percent drop in first-quarter net income.
The company announced in a briefing Tuesday that the capex will be equally split between expanding and upgrading its mobility business — which includes the nationwide network of fuel retail stations — and enhancing its supply chain infrastructure.
SPC treasurer and vice president for finance, Rey Abilo, said the investments will be funded through internally generated cash flows. “We will continue our disciplined approach in terms of capital spending… equally split between our mobility business and our supply chain,” said Abilo.
A key focus of the mobility investments will be the development and modernization of SPC’s existing 1,100 retail stations. “We aim to build, upgrade, and refresh our retail footprint to continuously provide superior customer service and experience,” Abilo noted.
On the supply side, part of the funding will support ongoing improvements to the company’s Tabangao import terminal — its largest logistics hub — with plans to enhance jetty operations and boost cost efficiency. Abilo said the upgrades are intended not only to maintain safety and reliability but also to “unlock new revenue streams.”
SPC vice president for mobility Mike Ramolete said the company is exploring new growth with the construction of 15 to 20 new stations over the period. He said SPC maintains a rigorous annual review of its retail portfolio to ensure station performance aligns with company benchmarks.
The announcements come even as SPC reported a significant income contraction in Q1 2025, with net earnings falling to P740 million from P1.4 billion year-on-year. The company did not specify the causes of the decline but framed the results as a demonstration of resilience.
“Despite the pressures brought by external headwinds, mainly coming from the tariff policies imposed by the US administration, SPC remained focused on efficient operations and financial discipline,” the company said.
The forward-looking capex strategy highlights SPC’s commitment to long-term growth, operational reliability, and customer-centric service, even amid a volatile and competitive energy landscape.
