Shell Pakistan Limited announced its financial results for the year ended December 31st, 2018. The oil marketing company has posted a loss of Rs. 1.10 billion compared to a profit of Rs. 3.18 billion in 2017.
The loss was seen due to an extraordinary increase in other expenses and higher administrative expenses. These were the major reasons for the dismal performance during the year. However, the company continues to face the burden of receivables as well.
The company posted net sales of Rs. 186 billion, which showed a growth of 10.71% as compared with Rs. 168 billion in the last year. Cost of sales of the company was posted at Rs. 170 billion as compared with Rs. 153 billion.
Most common factors for the deteriorating performance of the oil marketing segment this year have been high oil prices and the depreciation of the Rupee against the US Dollar
Other expenses of the company saw an extraordinary increase, which surged almost 3.6-times to Rs. 5.02 billion mainly due to currency exchange losses compared to Rs. 1.41 billion last year. These other expenses constitute the exchange losses from the Rupee depreciation.
Similarly, administrative expenses increased to Rs. 5.02 billion from Rs. 4.14 billion last year.
The other income of the company grew to Rs. 507 million against Rs. 419 million. Finance cost increased to Rs. 370 million compared to Rs. 235 million of the previous year.
Share profit of associates (net of tax) improved to Rs. 974 million compared to Rs. 838 million in the previous year
It posted a loss per share of Rs. 10.30 against earnings per share of Rs. 29.74
At the time of filing this report, Shell’s shares at the bourse were trading at Rs. 272.12, down by 5% or Rs. 14.32 with a turnover of 6,400 shares on Thursday.