October 22, 2019 (MLN): Shell Pakistan Limited (PSX: SHEL), the second-largest oil marketing company in the country has posted a loss of Rs 877.5 million for the nine months ended September 2019 against the profits of Rs 1.9 million booked in the same period last year.
The loss per share of the company reported at Rs 8.2 per share.
The company incurred losses mainly due to upsurge in operating expenses as its distribution and marketing expenses mounted by 17.7%, admin expenses increased by 15.7% and other expenses inflated by 25.6% YoY.
In addition, despite a 39% rise in other income, a colossal rise in finance cost due to higher interest rates during the period further hurt the company’s profitability.
|
Financial Results for the nine-month period ended September 30th 2019 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Sep-19 |
Sep-18 |
% Change |
|
Sales |
171,713,929 |
159,441,070 |
7.70% |
|
Other revenue |
599,205 |
659,933 |
-9.20% |
|
Sales tax |
(25,676,502) |
(24,035,864) |
6.83% |
|
Net revenue |
146,636,632 |
136,065,139 |
7.77% |
|
Cost of products sold |
(134,695,594) |
(124,357,811) |
8.31% |
|
Gross profit |
11,941,038 |
11,707,328 |
2.00% |
|
Distribution and marketing expenses |
(5,203,968) |
(4,419,311) |
17.76% |
|
Administrative expenses |
(3,835,610) |
(3,315,519) |
15.69% |
|
Other expenses |
(2,776,205) |
(2,210,234) |
25.61% |
|
Other income |
462,188 |
332,930 |
38.82% |
|
Operating profit |
587,443 |
2,095,194 |
-71.96% |
|
Finance costs |
(1,116,704) |
(196,967) |
466.95% |
|
Share of profit of associates – net of tax |
656,140 |
732,067 |
-10.37% |
|
Profit before taxation |
126,879 |
2,630,294 |
-95.18% |
|
Taxation |
(1,004,393) |
(692,725) |
44.99% |
|
Profit for the period |
(877,514) |
1,937,569 |
|
|
Earnings per share – basic and diluted (Rupees) |
(8.20) |
18.11 |
|
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