Shell Pakistan’s profit falls to over Rs3bn in 2024

February 20, 2025 (MLN): Shell Pakistan Limited (PSX: SHEL) reported a significant 43% decline in its annual profit for the year ended December 31, 2024, with profit after tax dropping to Rs3 billion from Rs6 billion in 2023.

Earnings per share (EPS) also reflected the downturn, decreasing from Rs27.34 in the previous year to Rs15.41 in 2024.

The decline in profitability was primarily driven by increased distribution and marketing expenses, lower gross profit, and a decrease in other income.

Despite a nearly stable sales figure of Rs. 435bn, representing a slight 0.7% decrease from Rs438.4bn in the previous year, the company faced higher operational costs.

The cost of products sold increased marginally by 1% to Rs404bn, contributing to a 23.5% reduction in gross profit, which stood at Rs23.5bn.

Distribution and marketing expenses surged by 15.4% to Rs13bn, while administrative expenses saw a notable decline of 32.4% to Rs6.7bn.

Other expenses dropped significantly by 89.6% to Rs1.4bn, but a drastic 62.5% fall in other income to Rs5bn further impacted overall profitability.

The company’s operating profit stood at Rs7bn, reflecting a 19% year-on-year decline.

Additionally, finance costs decreased by 19% to Rs2bn, while the share of profit from associates jumped by an impressive 189% to Rs 2bn.

Shell Pakistan’s profit before tax declined slightly by 1.4% to Rs7bn, but a significant turnaround in income tax—registering at Rs4bn compared to a tax expense of Rs1.4bn in the previous year—contributed to the substantial drop in net profit.

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