Shell Pakistan reported a net loss of Rs877.51 million for nine months ended September 30, 2019 as rupee depreciation and volatility in oil import prices increased the cost of doing business.
'Overall financials for the nine months…still present a challenging situation for the company, driven primarily by the unprecedented devaluation of the rupee, the volatility in international oil prices and increase in minimum tax rates applicable to the company,' Shell Pakistan said in a statement on Tuesday.
The company had reported a net profit of Rs1.94 billion in the same period of last year, according to a notification the company sent to the Pakistan Stock Exchange (PSX). The oil marketing firm posted loss per share of Rs8.2 in Jan-Sept 2019 compared to earnings per share of Rs18.11 in the corresponding period of preceding year.
Net sales surged 8% to Rs146.64 billion in the nine-month period compared to Rs136.07 billion last year.
However, other expenses increased 26% to Rs2.78 billion compared to Rs2.21 billion last year. The surge in expenses came mainly due to rupee depreciation.
Besides, the finance cost surged almost six times to Rs1.12 billion compared to Rs196.97 million in the previous year. The surge was partially due to a notable hike in the benchmark interest rate during the nine-month period.
Moreover, the company paid a massive tax of over Rs1 billion on profit of Rs126.88 million. In the same period of last year, it had paid a tax of Rs692.73 million on profit of Rs2.63 billion.
Distribution, marketing and administrative expenses increased notably during the period under review. Share of profit of associates (net of tax) dropped to Rs656.14 million compared to Rs732.07 million in the same period of previous year.
On the flip side, the other income improved to Rs462.19 million compared to Rs332.93 million last year.
In the quarter ended September 30, 2019, the company reported a profit of Rs569.94 million (earnings per share of Rs5.32) compared to Rs334.19 million (earnings per share of Rs3.12) in the same quarter of last year.
'Shell Pakistan Limited continued its focus on its strategic priorities and operational excellence in the quarter through macro-economic challenges in the country, and successfully delivered a profit after tax,' the company statement added.
© Pakistan Press International, source Asianet-Pakistan