KARACHI: The Board of Directors of Shell Pakistan Limited announced the second quarter results for the company on 21st August. The company posted an after tax loss of Rs 3,540 million compared to the loss of Rs 1,704 million made in the same period last year. The second quarter was a challenging quarter for the industry, Covid-19 lockdowns severely impacted volume.

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 7 percent while high speed diesel volumes fell by 9 percent compared to same period last year.

This declining trend in volumes also impacted SPL and had a significant effect on its financial performance. During this quarter, the crude oil also reached a new low of $19/barrel in April 2020. The oil industry felt the impact of this volatility in the oil prices.

This sharp decrease in the oil prices resulted in exceptionally high inventory losses at SPL which has significantly impacted its financial performance. 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.-PR

Copyright Business Recorder, 2020