Shell Pakistan Limited (SPL) has announced the financial results for the first quarter ended March 31, 2021.
The company posted a profit after tax of Rs. 1.948 billion compared to the loss of Rs. 4.332 billion made in the same period last year.
According to the statement released by the company, Q1 saw a significant recovery compared to a very tough last year. The encouraging turnaround is mainly driven by continued focus on strategic priorities and operational excellence. The success was supported by increasing international oil prices coupled with the appreciation of the Pakistan Rupee against the US dollar by 5 percent during the quarter.
During the first quarter, the company’s net sales saw an increase of 22.30 percent to Rs. 51.24 billion compared to Rs. 41.90 billion recorded in the same period last year.
Other income of the company was increased to Rs. 1.42 billion, up 1872 percent or 18.72x as compared to Rs. 72.78 million recorded in the same period last year. Finance cost was decreased to Rs. 274.26 million from Rs. 432.45 million.
Earnings per share of the company were reported at Rs. 11.17 as compared to a loss per share of Rs. 28.03.
Shell’s scrip at the bourse was closed at Rs. 160.44, down by Rs. 2.36 or 1.45 percent, with a turnover of 434,500 shares on Thursday.
During the quarter, the company continued to grow its network by adding seven new sites.
SPL decided to issue the right shares to ensure a healthy financial and cash position, to meet working capital requirements, and to enhance shareholders’ value. The rights process was completed in Q1 2021. The right issue was fully subscribed by shareholders, and the allotment of shares was made on March 2, 2021. Shell Petroleum Company Ltd. invested Rs. 9 billion, increasing its shares in Shell Pakistan from 76.11 to 77.42 percent.