Shell Pakistan records Rs5.9bn profit in 2023

March 06, 2024 (MLN): Shell Pakistan Limited (PSX: SHEL) unveiled its profit and loss statement for 2023, wherein the profit after tax clocked in at Rs5.85 billion [EPS: Rs23.34], a significant leap from a loss of Rs72.3 million [LPS: Rs0.34] recorded in the same period last year (SPLY).

The company did not announce any additional dividend beyond the interim dividend already paid during the nine months, which amounted to Rs5 per share.

Going by the results made available by the com[pany on the local bourse, the company's top line rose by 4.6% YoY to Rs431.65bn as compared to Rs412.7bn in SPLY.

However, the cost of sales also rose 5.7%, worsening the gross profit by 8.4% YoY to Rs30.77bn in 2023.

The gross margins declined to 7.13% as compared to 8.14% in 2022.

During the review year, other income surged by 7.67x YoY to stand at Rs13.34bn in 2023 as compared to Rs1.74bn a year earlier.

On the expense side, the company observed an increase in distribution and marketing expenses by 10.6% YoY while reducing its other expenses by 4.1% YoY to clock in at Rs11.37bn and Rs13.79bn respectively during the review period.

The company’s finance cost grew by 84.0% YoY and stood at Rs2.5bn as compared to Rs1.36bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs1.4bn against the Rs2.99bn paid in the corresponding period of last year, depicting a decrease of 53.3% YoY.

Amount in thousand except for EPS

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