Shell Pakistan Limited, the fourth largest oil marketing company in Pakistan posted a loss of Rs1.10 billion in the year ended December 31, 2018. The main reason of this reported loss has been the surge in the administrative and other expenses. The oil marketing firm had booked a profit of Rs3.18 billion in the previous year, the company said in a notification to the PSX.
The company suffered a loss per share of Rs10.30 in 2018 compared to earnings per share of Rs29.74 in the 2017. Shell’s share price dropped 3.66%, or Rs10.89, and closed at Rs286.44 with 17,200 shares changing hands at the PSX.
However, oil marketing company has increased its sales. Net sales of the company which has 9% market share had grown 10% to Rs186.20 billion in the year compared to Rs168.84 billion last year.
But the increase in expenses overshadows the increase in sales. The expenses surged 3.6-time to Rs5.02 billion mainly due to currency exchange losses compared to Rs1.41 billion last year, did not let the net sales translate into profit. Similarly, the administrative expenses increased to Rs5.02 billion from Rs4.14 billion last year.
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23 June, 2019