SHELL observes earning turnaround in 1HCY21

August 26, 2021 (MLN): Shell Pakistan Limited has observed a turnaround in earnings to Rs2.15billion (EPS:11.07) for the half year ended on June 30, 2021, compared to the net losses of Rs7.87bn (LPS: 50.93) incurred in the corresponding period last year.

This turnaround is mainly attributable to the increase in petroleum demand amid restoration of economic activities after easing off the lockdown restriction.

Going by the company’s financial statement sent to PSX today, net revenue of the company surged by 49.74% to clock in at Rs107.13 billion, against Rs71.55bn in 1HCY20.

Subsequently, the gross profits of the company reached Rs8.82bn in 1HCY21, compared to the gross loss of Rs1.25bn in the same period last year.

On the expense side, the company saw almost 14% YoY rise in distribution and marketing cost while, the administrative expenses of the company inched up by 6% YoY during the review period which shows a meagre increment in salaries side as SHEL underperformed the industry during the 1HCY21 period, a report by Intermarket Securities noted.

On the contrary, the other expenses of the company substantially dropped by 81% to stand at Rs212.15 million in 1HCY21.

Amid lower tax regime, the finance cost of the company slashed by 47% to Rs455.54mn in 1HCY21, compared to the corresponding period last year.

In addition, the company also paid the taxes of Rs626.39mn during the period, compared to the tax rebate of Rs235mn, enjoyed by the company in 1HCY20.

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