Shell Pakistan Limited has announced financial results for the calendar year 2019.
The company posted a loss after tax of Rs. 1.48 billion for 2019, 35% higher compared to the loss of Rs 1.10 billion in 2018. However, the company reported a 7.26% increase in sales, reported at Rs. 199.71 billion as compared to Rs. 186.20 billion.
The cost of sales were Rs. 184.62 billion, up 8.11% as compared with Rs. 170.77 billion in 2018. This took the gross profit to Rs. 15.09 billion down by 2.12% as compared with the last year.
Finance costs of the company were posted at Rs. 1.52 billion, up by a massive 311.40% as compared to Rs. 370 million posted last year. The company reported a loss per share of Rs. 13.88 as compared with a loss per share of Rs. 10.30.
In 2019, the Pakistani Rupee further devalued against the US dollar by 11 percent. Although the rupee remained reasonably stable in the last six months, its effects were felt in the overall results of the company.
The company said in a statement:
Being a part of an import-dependent industry where a large percentage of SPLs costs are denominated in foreign currency, this devaluation had an impact on its cost base and, in turn, on financial performance.
It further added that the oil industry felt the impact of some of the continued macro-economic challenges faced by the country, owing to the unprecedented devaluation of the rupee, declining fuels market, volatility in the international oil prices and increased minimum tax rates applicable, which has had a significant impact on SPLs financial results said released statement by the company.