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Rising expenses drag down Shell’s profits

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 October 23, 2018 (MLN): The bottom line profits recorded for Shell Pakistan Limited (SHEL) have dropped by nearly 38% during the nine month period ended on September 30, 2018, when compared to the earnings for the corresponding period of prior year.

The apparent decline is attributed to lack of control on the company’s non-core expenses, which registered a growth worth Rs.1.6 billion.

While the company’s gross profits increased by Rs.451 million, upbeat effect could not last long in face of overall boost in expenses.

Shell has witnessed its profits reduce from Rs.3.1 billion to Rs.1.9 billion, whereas basic and diluted earnings per share have dropped by Rs.10.91 per share, to Rs.18.11 per share.

Financial Results for the nine month period ended September 30th 2018 ('000 Rupees)

 

Sep-18

Sep-17

% Change

Net revenue

                  136,065,139

                  130,141,969

4.55%

Cost of products sold

                (124,357,811)

                (118,885,544)

4.60%

Gross profit

                     11,707,328

                     11,256,425

4.01%

Distribution and marketing expenses

                     (4,419,311)

                     (3,866,193)

14.31%

Administrative expenses

                     (3,315,519)

                     (3,084,450)

7.49%

Other expenses

                     (2,210,234)

                        (591,286)

273.80%

Other income

                           332,930

                           379,776

-12.34%

Operating profit

                       2,095,194

                       4,094,272

-48.83%

Finance costs

                        (196,967)

                        (176,872)

11.36%

Share of profit of associates – net of tax

                           732,067

                           555,413

31.81%

Profit before taxation

                       2,630,294

                       4,472,813

-41.19%

Taxation

                        (692,725)

                     (1,367,739)

-49.35%

Profit for the period

                       1,937,569

                       3,105,074

-37.60%

Earnings per share – basic and diluted (Rupees)

                               18.11

                               29.02

-37.59%

 

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Posted on: 2018-10-24T14:33:00+05:00

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