Shell profits plunge by 52.85% YoY to Rs3.54bn in 1HCY23

August 16, 2023 (MLN): Shell Pakistan Limited (PSX: SHEL) has revealed its financial statement today for the half year ended June 30, 2023, as per which the company posted a profit worth Rs3.54 billion [EPS: Rs16.54], depicting a drop of 52.85% YoY, compared to Rs7.51bn [EPS: Rs35.08] in the same period last year (SPLY), SHEL's filing on PSX showed today.

Going by the results, the company's top line rose by 8.53% YoY to Rs215.42bn in 1HCY23 as compared to Rs198.48bn in SPLY.

The cost of sales rose by 16% YoY, higher than proportionate to the sales increase, which resulted in the gross profit dropping by 34.87% YoY to Rs18.19bn in 1HCY23 compared to Rs27.93bn in 1HCY22.

However, during the review period, other income expanded massively to stand at Rs12.22bn in 1HCY23 as compared to Rs1.08bn in SPLY.

On the expense side, the company observed a rise in Distribution Costs by 28.30% YoY and other expenses by 46.43% YoY to clock in at Rs5.51bn and Rs12.95bn respectively during the review period.

While administrative expenses also witnessed a significant rise of 41.20% to Rs4.99bn as compared to Rs3.54bn in SPLY.

The company’s finance costs inflated by 2.42x YoY and stood at Rs1.17bn as compared to Rs484.75 million in 1HCY22, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs2.5bn against the Rs7.51bn paid in the corresponding period of last year, depicting a fall of 49.55% YoY.

Copyright Mettis Link News