Shell Pakistan incurs hefty losses of Rs 4.33 billion in 1QCY20

May 20, 2020 (MLN): Due to the uncertain outlook as a result of Covid-19 pandemic, the first quarter of the ongoing fiscal year has been tough for the leading oil marketing company Shell Pakistan Limited as it reported a loss worth Rs  4.33 billion compared to the profits of Rs 256.89 million earned in the corresponding quarter of last year.

The company’s loss per share clocked in at Rs 40.48 against the earnings per share of Rs 2.40 reported in the first quarter of 2019.

The losses were mainly attributable to decline in sales volume which diminished company’s net revenues by 8%. Consequently, Shell’s gross profits deteriorated significantly by 76% YoY.

Furthermore, a considerable jump in Admin cost by 72.17% and other expenses by 316.8% also had a great impact on company’s income as they turned company’s operating profits into operating losses of Rs 3.9 billion.

Shell also witnessed a 74% decline in other income during the quarter under review which further helped in dragging company’s profits into negative territory.

Financial Results for the Quarter ended March 31, 2020 ('000 Rupees)

 

Mar-20

Mar-19

% Change

Sales

 49,309,716

 53,283,294

-7.46%

Other revenue

 104,724

 236,835

-55.78%

Total revenue

 49,414,440

 53,520,129

-7.67%

Sales tax

 (7,504,663)

 (7,939,819)

-5.48%

Net revenue

 41,909,777

 45,580,310

-8.05%

Cost of products sold

 (41,163,967)

 (42,460,043)

-3.05%

Gross profit

 745,810

 3,120,267

-76.10%

Distribution and marketing expenses

 (1,747,045)

 (1,606,267)

8.76%

Administrative expenses

 (1,315,789)

 (764,246)

72.17%

Other expenses

 (1,667,284)

 (400,000)

316.82%

Other income

 72,784

 279,818

-73.99%

Operating profit/ (Loss)

 (3,911,524)

 629,572

 

Finance costs

 (432,451)

 (330,508)

30.84%

 

 (4,343,975)

 299,064

 

Share of profit of associates – net of tax

 248,228

 215,496

15.19%

Loss before taxation

 (4,095,747)

 514,560

 

Taxation

 (236,715)

 (257,666)

-8.13%

Net Loss for the year

 (4,332,462)

 256,894

 

Loss per share – basic and diluted (Rupees)

 (40.48)

 2.40

 

 

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Posted on: 2020-05-20T16:06:00+05:00

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