Shell Pakistan Limited (SPL), a subsidiary of Shell Petroleum Company Limited, reported a profit of Rs1.13 billion for the quarter ending June 30, 2024. This figure reflects a significant year-on-year decline of over 86% compared to the Rs8.3 billion profit recorded during the same period last year.
The company’s earnings per share (EPS) for the April-June quarter fell sharply to Rs4.69, down from Rs38.79 in the corresponding period last year.
According to a notice submitted to the Pakistan Stock Exchange (PSX) on Monday, Shell Pakistan’s net revenue for the quarter rose to Rs112.45 billion, representing a nearly 9% increase from Rs103.46 billion in the same period last year. However, despite the rise in sales, the company’s gross profit saw a slight decrease of nearly 1%, coming in at Rs5.95 billion compared to Rs5.99 billion last year. This decline is attributed to a more than 10% increase in the cost of products.
Shell Pakistan managed to reduce its operational expenses by 12% during the quarter, amounting to Rs6.42 billion. This reduction was primarily driven by a significant drop in other expenses, which decreased by over 74%, from Rs1.81 billion last year to Rs465.8 million in the latest quarter.
However, the company’s other income experienced a steep decline of over 76%, dropping to Rs2.79 billion compared to Rs11.74 billion in the same period last year. This reduction in other income was a key factor in the overall decrease in profitability.
As a result, Shell Pakistan’s operating profit for the quarter fell to Rs2.32 billion, down from Rs10.4 billion in the corresponding quarter last year.
Following the announcement of these financial results, Shell Pakistan’s share price closed at Rs143.52 per share, marking a slight decline of Re0.63 or 0.44%.
It is worth noting that in July of last year, Shell Pakistan announced that its parent company had expressed its intent to sell its shareholding in SPL, a move that could have significant implications for the company’s future operations and performance.
