April 23, 2019 (MLN): Shell Pakistan Limited (SHEL) has reported net earnings of Rs. 256 million (EPS: Rs. 2.4) for the quarter ended March 31, 2019, i.e. just about 81% lower than the earnings of Rs. 1.3 billion recorded in the same period last year.
According to a research report by Intermarket Securities, the company suffered a decline of 30% in its gross profit margins on the back of inventory losses and presumably lower lube sales.
Furthermore, the increase in Finance costs was reported to be around 6x higher, primarily due to greater short-term borrowings made by the company.
However, unlike its peers, SHEL has observed an improvement in its market share in the period under review, mainly due to investment in infrastructure and logistics to regain lost business in Furnace Oil (FO).
|
Profit and loss account for the quarter ended March 31 2019 (Rupees'000) |
|||
|---|---|---|---|
|
Mar-19 |
Mar-18 |
% Change |
|
|
Sales |
53,283,294 |
49,288,567 |
8.10% |
|
Other revenue |
236,835 |
204,164 |
16.00% |
|
Sales tax |
-7,939,819 |
-7,875,769 |
0.81% |
|
Net revenue |
45,580,310 |
41,616,962 |
9.52% |
|
Cost of products sold |
-42,460,043 |
-37,159,706 |
14.26% |
|
Gross profit |
3,120,267 |
4,457,256 |
-30.00% |
|
Distribution and marketing expenses |
-1,606,267 |
-1,317,449 |
21.92% |
|
Administrative expenses |
-764,246 |
-781,697 |
-2.23% |
|
Other expenses |
-400,000 |
-796,162 |
-49.76% |
|
Other income |
279,818 |
104,240 |
168.44% |
|
Operating profit |
629,572 |
1,666,188 |
-62.21% |
|
Finance costs |
-330,508 |
-46,706 |
607.63% |
|
Share of profit of associate – net of tax |
215,496 |
273,932 |
-21.33% |
|
Profit before taxation |
514,560 |
1,893,414 |
-72.82% |
|
Taxation |
-257,666 |
-537,450 |
-52.06% |
|
Profit for the period |
256,894 |
1,355,964 |
-81.05% |
|
Earnings per share — basic and diluted |
2.40 |
12.67 |
-81.06% |
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