Shell undergoes losses worth Rs 1.48 billion in CY19

March 4, 2020 (MLN): Shell Pakistan Limited has announced its financial results for the CY19, as per which the company has posted its net losses of Rs 1.48 billion (LPS: Rs13.88), i.e. around 35% higher than net losses of Rs 1.1 billion (Rs 10.30) of the corresponding period of last year.

As per the financial statement of the company, the net revenue went up by 7.26% YoY, but more than an increase in the cost of sales (up by 8.11 %) caused gross profits to decrease by 2.12% YoY to Rs. 15 billion.

On the cost front, the distribution and marketing expenses increased by 14% YoY whereas distribution expenses plunged by 45% YoY.

More notably, the main culprit is the colossal increase in finance cost which increased by 4 times YoY, from Rs 370 million to Rs 1.5 billion, damaging the company’s performance owing to higher borrowings with higher interest rates.

 

Financial Results for the year ended December 31, 2019 ('000 Rupees)

 

Dec-19

Dec-18

% Change

Sales

 234,040,872

 214,211,920

9.26%

Other revenue

 765,436

 941,091

-18.67%

Total revenue

 234,806,308

 215,153,011

9.13%

Sales tax

 (35,087,707)

 (28,949,456)

21.20%

Net revenue

 199,718,601

 186,203,555

7.26%

Cost of products sold

 (184,621,127)

 (170,779,180)

8.11%

Gross profit

 15,097,474

 15,424,375

-2.12%

Distribution and marketing expenses

 (7,388,212)

 (6,482,137)

13.98%

Administrative expenses

 (5,042,971)

 (5,028,800)

0.28%

Other expenses

 (2,791,907)

 (5,084,078)

-45.09%

Other income

 557,612

 507,050

9.97%

Operating profit/ (Loss)

 431,996

 (663,590)

 

Finance costs

 (1,522,768)

 (370,159)

311.38%

 

 (1,090,772)

 (1,033,749)

 

Share of profit of associates – net of tax

 950,806

 974,075

-2.39%

Loss before taxation

 (139,966)

 (59,674)

134.55%

Taxation

 (1,345,801)

 (1,042,311)

29.12%

Net Loss for the year

 (1,485,767)

 (1,101,985)

34.83%

Loss per share – basic and diluted (Rupees)

 (13.88)

 (10.30)

34.76%

 

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Posted on: 2020-03-04T17:52:00+05:00

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