The Board of Directors of Shell Pakistan Limited (SPL) met on Friday to discuss the company’s performance and announce its financial results for the second quarter of 2020.
The company posted an after-tax loss of Rs3,540 million for the period under review, as compared to the loss of Rs1,704 million posted in the corresponding period of last year.
“The second quarter was a challenging one for the industry, as Covid-19 lockdowns had severely impacted the sales volume,” said a statement issued by the SPL. “Although the lockdown measures have been recently eased by the government, oil marketing companies in Pakistan still experienced a reduction in oil consumption.”
Pakistan’s motor gasoline volumes fell by 7pc while high-speed diesel volumes fell by 9pc during the quarter under review, as compared to the same period last year. “This declining trend in volumes also impacted SPL and had a significant effect on its financial performance.”
During the 2nd quarter of CY20, crude oil also reached a new low of $19 per barrel (in April). The oil industry felt the impact of this volatility, with SPL witnessing exceptionally high inventory losses.
“SPL is focused on playing a key role in developing Pakistan’s energy future and remains committed to improving its financial performance while ensuring safety and compliance,” the statement read.