In 2025, the global LPG market continued to operate in a challenging environment shaped by evolving energy policies, shifting trade flows, and ongoing geopolitical pressures. Following a period of relative stability in 2024, renewed volatility arose due to tariff discussions and changes in global supply patterns. Nevertheless, overall LPG demand remained stable, favored by growth in emerging regions such as Latin America, Asia, and Africa, where policy-driven programs and LPG’s role as a lower-emission & accessible energy source supported consumption. More mature markets in Europe and North America experienced stable to slowly decreasing demand, although the pace of energy transition initiatives slowed down, with technical and economic constraints requiring a balance between energy security and decarbonization ambitions.
Despite variations in supply and demand dynamics across markets, SHV Energy remained well protected through its diversified sourcing strategy and robust margin and hedging approach. This enabled the business to absorb price fluctuations and create opportunities for customers seeking to manage energy‑cost risks.
SHV Energy’s mission remains centred on ‘Advancing Energy Together’ by providing off-grid customers with access to affordable, safe, and cleaner energy. Building on top of its robust strategy from previous years, the Group further refined its strategic priorities to remain aligned with its long-term ambitions and external macro trends. The strategy is driven by three updated building blocks: (i) Driving maximum performance from the existing LPG portfolio; (ii) Expanding in current and new markets; and (iii) Accelerating the development and deployment of sustainable fuels and renewable solutions.
The Horizons program launched three years ago, aiming to maximize the potential of SHV Energy’s LPG portfolio. The program grouped countries based on business potential and market outlook, enabling differentiated steering models per cluster to drive focus and efficiency. The initial three-year cycle concluded in 2025, with over 900 initiatives yielding positive results across the business and a significant step-up in cash generation.
Building on the success of Horizons ‘23–25, a second iteration was launched for the next three-year period. Horizons ’26–29 incorporates learnings and improvements from its predecessor, including recalibrated country clusters, an expanded scope, and additional steering levers, all with clearly defined targets and initiatives throughout the LPG business.
Beyond LPG, the Group aims to leverage its established asset base to continue supporting the energy transition with cleaner alternatives for its customers through sustainable fuels and renewable solutions. Recognizing that transition momentum is being weighed against market-wide technical and economic hurdles, the strategic setup for both areas was refreshed during the year.
Acknowledging the absence of readily available market solutions, SHV Energy remains committed to leading the acceleration of sustainable fuels through increased collaboration, commercial partnerships across the industry, and a focus on high-impact opportunities. BioLPG, a cleaner alternative with the same molecular structure as LPG, remains the main viable option offered by the business despite its high premium. Several projects are being explored, including a collaboration with leading industry players, long-term off-taker opportunities, and prioritization of more sustainable molecules (rDME and rLPG).
Renewable Solutions was brought closer to the core business, with greater alignment to the existing asset and customer base. This led to the 2025 divestment of the assets of SunSource, a solar generation company in India, shifting SHV Energy’s focus towards supporting customers in the energy transition. This decision aligns with the revised strategic priorities, while also reflecting the challenges and highly competitive nature of the Indian solar market and the significant capital requirements within the industry.
To drive strategic execution, SHV Energy is building a strong foundation of capabilities and key enablers across the organization. In 2025, SHV Energy prioritized a step-change in Health & Safety, strengthening safety programs and fostering a proactive safety culture with emphasis on transportation safety. ESG has been integrated into the core strategy, concentrating on access to cleaner energy and progression towards CSRD assurance in 2027. Digital, AI, and continuous improvement initiatives are set to drive end-to-end business value and AI adoption, spanning from customer service and profitability to productivity and network optimization. This has been enabled by people, developing new skills to accelerate strategy implementation within an inclusive culture.
Overall, SHV Energy delivered strong results in 2025, increasing both cash generation and bottom-line results. Operational performance remained at historically high levels, with stable volumes, healthy margins, and disciplined cost management. The year also included several one-off events, such as the benefit from federal tax credits in Brazil, the sale of SunSource, and continued efforts to restore performance in France following the previous year's challenging ERP rollout.
SHV Energy enters 2026 with a clear focus on further strengthening its core LPG performance, capturing growth opportunities, and advancing sustainable fuels in key geographies. Continued geopolitical tensions may contribute to market volatility. SHV Energy will remain focused on sourcing flexibility, hedging discipline and margin management to safeguard performance.
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