August 21, 2019 (MLN): Shell Pakistan Limited has incurred losses of Rs. 1.4 billion (LPS: Rs. 13.53) for the half year ended June 30, 2019, in contrast to profits of Rs. 1.6 billion (EPS: Rs. 14.98) recorded in the same period of last year.
The net revenue during the period surged by 12.5%, whereas COGS grew by 13.61%. This led to nearly 1.5% increase in gross profits.
The company came under severe financial pressure after the non-core expense increased by 71%, from Rs. 1.8 billion to Rs. 3.2 billion. This resulted in an operating loss of Rs. 259.1 million.
Moreover, the finance cost of the company grew 6X during the period, owing to increase in policy rate.
Profit and loss account for the half year ended June 30, 2019 (Rupees'000)
June, 2019
June, 2018
% Change
Sales
116,844,907
106,434,056
9.78%
Other revenue
436,810
448,044
-2.51%
Sales tax
-16,136,493
-16,976,565
-4.95%
Net revenue
101,145,224
89,905,535
12.50%
Cost of products sold
-92,728,582
-81,619,815
13.61%
Gross profit
8,416,642
8,285,720
1.58%
Distribution and marketing expenses
-3,448,858
-2,840,859
21.40%
Administrative expenses
-2,360,077
-2,012,113
17.29%
Other expenses
-3,245,246
-1,897,858
71.00%
Other income
378,350
268,974
40.66%
Operating (loss) / profit
-259,189
1,803,864
Finance costs
-726,846
-93,249
679.47%
Share of profit of associate – net of tax
460,094
487,224
-5.57%
(Loss) / Profit before taxation
-525,941
2,197,839
Taxation
-921,517
-594,463
55.02%
Net (loss) / profit for the period
-1,447,458
1,603,376
(Loss) / Earnings per share- basic and diluted (Rupees)
