SHEL witnesses 81% decline in PAT during 1QCY19

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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Posted on: 2019-04-23T18:05:00+05:00

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