Shell plunges into Rs4.7bn loss despite higher sales in 1QFY23

May 04, 2023 (MLN): Shell Pakistan Limited (PSX: SHEL) reported a loss of Rs4.71 billion (LPS: Rs22.25) in 1QFY23, as compared to a profit of Rs2.07bn (EPS: Rs 9.72) in the same period a year earlier.

The overall oil and gas marketing companies industry (OMCs) had a decline in sales, primarily attributable to the surge in petroleum prices, macroeconomic conditions, and a decrease in FO-based power generation.

Going by the financial statement, the company reported an increase in net sales by 31.3% YoY of Rs108.63bn as compared to Rs82.7bn in the same period last year, on the back of a 2.7x YoY surge in other revenues.

As a result, the gross profits of the company also went up by 30.42% YoY to Rs12.19bn during the said period.

However, this was overshadowed by increased expenses, mainly on the back of other expenses that inflated 4.4x YoY to Rs11.13bn in 1QFY23 as compared to just Rs2.52bn in 1QFY22.

Additionally, finance costs went up by 3.4x YoY to stand at Rs737.76 million against Rs216.9m in the same period last year, mainly attributed to higher interest rates.

Meanwhile, the company paid 27.66% YoY lesser taxes worth Rs688m as compared to Rs951.07m paid in the same period of the corresponding year.

Notably, internationally, British energy giant Shell also posted its soaring first-quarter result today.

Profit after tax surged 22% YoY to $8.7 billion (€6.7bn), , as falling costs and better performance at its chemicals division offset lower gas and oil prices.

Adjusted earnings rose 6% YoY to £9.6bnand revenue advanced 7% YoY to $8bn.

The company kept its dividend and share repurchase program unchanged.

Copyright Mettis Link News