Karachi, August 26, 2024 — Shell Pakistan Limited (SPL), a subsidiary of Shell Petroleum Company Limited, has reported a profit of Rs1.13 billion for the three-month period ending June 30, 2024. This represents a dramatic year-on-year decline of over 86% from the Rs8.3 billion profit recorded during the same quarter in the previous year.
The company’s earnings per share (EPS) have also been significantly affected, dropping to Rs4.69 from Rs38.79 in the corresponding period last year.
Following a challenging financial year in 2022, Shell Pakistan had rebounded with a notable profit of Rs6.2 billion in 2023. However, the recent financial results indicate a stark contrast, despite a nearly 9% increase in net revenue for the quarter, which rose to Rs112.45 billion from Rs103.46 billion year-over-year.
In a notice issued to the Pakistan Stock Exchange (PSX) on Monday, Shell Pakistan explained that although revenue increased, the company’s gross profit saw a slight decline of nearly 1%, totaling Rs5.95 billion in the quarter ending June 30, 2024, down from Rs5.99 billion the previous year. This decrease in gross profit was attributed to a more than 10% rise in the cost of products.
The financial results highlight the ongoing challenges faced by Shell Pakistan amidst fluctuating market conditions and rising operational costs.
