Shell Pakistan Limited (‘SPL’) has announced the financial results for Q3 2020.
The company posted an after-tax profit of Rs. 1.81 billion, which is 218% or 2.18x higher as compared to the profit of Rs. 570 million in the same period last year.
Overall, during the nine months of 2020, the company reported a loss of Rs. 6.06 billion, up by 5.91x as compared to Rs. 877 million recorded in the same period last year.
The financials still present a challenging situation, driven primarily by the unprecedented coronavirus pandemic and its effects which resulted in declining fuel demand and volatility in the international oil prices. Over the course of the nine months of 2020, the Pak Rupee devalued against the US dollar by a further 6%.
Shell Lubricants saw a significant growth of 40% in volumes as compared to the previous quarter.
During the third quarter, the company’s net sales saw a decline of 4.13% to Rs. 43.61 billion as compared to Rs. 45.49 billion. However, the cost of products sold by the company came down by 7.60% to Rs. 38.78 billion from Rs. 41.96 billion.
“Although the Pak Rupee remained relatively stable during the quarter, its effects were felt in the overall results of the Company. Being part of an import-dependent industry where a large percentage of our costs are denominated in foreign currency, this devaluation had an impact on our cost base and, in turn, on our financial performance,” said a statement issued by the company
The distribution and marketing expenses were reported at Rs. 1.48 billion, declining by 15.45% as compared with Rs. 1.75 billion. Other income of the company went down by 90.60% to Rs. 52.93 million from Rs. 561.39 million.
Share of profit from the associate company increased to Rs. 259.24 million from Rs. 196.04 million.
Earnings per share of Shell increased to Rs. 16.93 from Rs 5.33. Shell’s shares at the bourse closed at Rs. 250.15, down by Rs. 15.52 or 5.84%, with a turnover of 1.10 million shares on Wednesday.