October 18, 2023 (MLN): Shell Pakistan Limited (PSX: SHEL) achieved a noteworthy increase in its profitability during the first nine months of 2023, with a remarkable growth of 2.25x YoY.
The company reported a profit after tax of Rs6.45 billion, equating to an earnings per share (EPS) of Rs30.14.
This substantial improvement contrasts with the profit of Rs2.86bn [EPS: Rs13.38] recorded in the same period in the previous year (SPLY).
Along with the results, the company also announced an interim cash dividend for the quarter and nine months that ended September 30, 2023 at the rate of Rs5 per share (i.e. 50%).
Going by the results, the company's top line rose by 5.92% YoY to Rs321.17bn as compared to Rs303.21bn in SPLY.
The cost of sales also rose by 7.96% YoY, which worsened the gross profit by 10.70% YoY to Rs29.61bn in 9MCY23.
However, during the review period, the company's financial health was supported by a massive increase in other income, which stood at Rs12.74bn in 9MCY23 as compared to just Rs973.48m in SPLY.
On the expense side, the company observed a fall in Distribution and marketing expenses by 12.95% YoY while other expenses rose by 9.55% YoY to clock in at Rs8.8bn and Rs13.49bn respectively during the review period.
The company’s finance costs increased by 87.25% YoY and stood at Rs1.95bn as compared to Rs1.04bn in 9MCY22, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs5.14bn against the Rs2.75bn paid in the corresponding period of last year, depicting an increase of 86.71% YoY.
| Unconsolidated (un-audited) Financial Results for Nine months ended 30 September, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Sep 23 | Sep 22 | % Change | |
| Sales | 321,171,785 | 303,209,196 | 5.92% |
| Cost of sales | (291,563,388) | (270,053,828) | 7.96% |
| Gross Profit | 29,608,397 | 33,155,368 | -10.70% |
| Distribution and marketing expenses | (8,798,132) | (10,107,157) | -12.95% |
| Administrative expenses | (6,916,045) | (5,664,629) | 22.09% |
| Share of profit of associate – net of tax | 399,570 | 617,546 | -35.30% |
| Other Income | 12,740,424 | 973,480 | 1208.75% |
| Other expenses | (13,492,211) | (12,315,539) | 9.55% |
| Finance cost | (1,954,502) | (1,043,801) | 87.25% |
| Profit before taxation | 11,587,501 | 5,615,268 | 106.36% |
| Taxation | (5,137,131) | (2,751,371) | 86.71% |
| Net profit for the period | 6,450,370 | 2,863,897 | 125.33% |
| Basic earnings/ (loss) per share | 30.14 | 13.38 | – |
Amount in thousand except for EPS
Copyright Mettis Link News
Posted on: 2023-10-18T12:22:45+05:00
