Shell Pakistan Limited, a part of Shell Petroleum Company Limited, reported a profit of Rs1.13 billion for the three months ending June 30, 2024. This figure, announced on Monday, shows a sharp decline of over 86% compared to the Rs8.3 billion profit made during the same period last year.
This significant drop in profits has also affected Shell Pakistan’s earnings per share, which decreased to Rs4.69, down from Rs38.79 in the previous year. The company had bounced back in 2023 with a Rs6.2 billion profit after experiencing losses in 2022, but the latest results indicate a challenging period for Shell Pakistan.
In a notice issued to the Pakistan Stock Exchange on Monday, it was revealed that Shell Pakistan’s net revenue for the quarter ending June 30, 2024, had actually increased by nearly 9%, rising to Rs112.45 billion from Rs103.46 billion in the same quarter the previous year.
However, despite this increase in revenue, the company’s gross profit saw a slight decline, falling by nearly 1% to Rs5.95 billion compared to Rs5.99 billion in the same period last year. This decrease in gross profit was largely due to a more than 10% rise in the cost of products, which has squeezed the company’s profit margins.
