The previous couple of years had the bearing on the OMC where despite growth in revenues due to rising prices, the company’s bottomline suffered from the unprecedented devaluation of domestic currency against USD and high macroeconomic and political uncertainty. However, 2023 turned profitable for Shell Pakistan Limited (PSX: SHEL) as the company reported Rs5.85 billion profit after tax in CY23 versus a net loss of 72 million in CY22.
The multinational oil marketing company witnessed a five percent year-on-year rise in its net revenues – brought by higher retail prices. And while SHEL’s gross profits declined by around 8 percent year-on-year during CY23, the company’s operating profits saw a whopping rise of 2.75 times during the year. This rise was primarily driven by 7.6 times higher other income.
Consequently, Shell Pakistan’s bottomline was seen surging despite 84 percent year-on-year rise in finance cost for CY23. The company did not announce a cash dividend for the year ended though it had announced interim cash dividend for the 9MCY23 of Rs5 per share.
Last year, the parent company of Shell Pakistan Limited had announced the intent to sell its majority shareholding in the company to either domestic or international investors in a bid to reorganize its global business. It was decided that the Shell brand will continue to be available in Pakistan through brand licensing agreements. Later it was informed via the stock exchange that the company reached an agreement to sell over 77 stake in Shell Pakistan Limited to a Saudi firm called Wafi Energy LLC.
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