The Board of Directors of Shell Pakistan Limited announced financial results for the year ended December 31, 2019. The company posted a loss after tax of Rs 1,485 million for 2019 compared to the loss of Rs 1,102 million in 2018.
The oil industry felt the impact of some of the continued macro-economic challenges faced by the country, primarily 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.
In 2019, the Pak Rupee further devalued against the US dollar by 11 percent. Although the Pak Rupee remained reasonably stable in the last six months, its effects were felt in the overall results of the company. Being 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.