Shell Pakistan posts Rs1.1bn profit in Apr-Jun 2024, over 86% lower year-on-year

Shell Pakistan Limited (SPL), a subsidiary of Shell Petroleum Company Limited, announced a profit of Rs1.13 billion in the three-month period that ended June 30, 2024.

The results of the April-June quarter released on Monday are a far cry from a profit of Rs8.3 billion it reported in the same period of the previous year, a year-on-year decline of over 86%.

Resultantly, Shell Pakistan posted earnings per share (EPS) at Rs4.69, compared to an EPS of Rs38.79 in SPLY.

Turnaround: after loss-making 2022, Shell Pakistan posts Rs6.2bn profit in 2023

According to the notice to the Pakistan Stock Exchange (PSX) on Monday, Shell Pakistan’s net revenue during the quarter ended June 30, 2024, rose to Rs112.45 billion compared to Rs103.46 billion in SPLY, a nearly 9% increase.

However, despite higher sales, the company’s gross profit decreased by nearly 1% clocking in at Rs5.95 billion in 4QFY24, compared to Rs5.99 billion in SPLY, on account of over 10% increase in cost of products.

The OMC’s operational expenses during the 4QFY24 stood at Rs6.42 billion, lowered by 12%, mainly driven by lower other expenses, which clocked in at Rs465.8 million, as compared to Rs1.81 billion, a decrease of over 74%.

However, the company’s other income declined significantly by over 76%, clocking in at Rs2.79 billion in 4QFY24 as compared to Rs11.74 billion in SPLY.

Consequently, Shell Pakistan posted an operating profit of Rs2.32 billion 4QFY24, as compared to an operating profit of Rs10.4 billion in SPLY.

Following the financial results announcement, the company’s share price was at Rs143.52 per share, a decline of Re0.63 or 0.44%.

Last year in July, Shell Pakistan announced that its parent company had notified its intent to sell its shareholding in SPL.