Shell Pakistan Limited (PSX: SHEL) reported a net loss of Rs727.11 million (Loss per Share: Rs2.78) for the quarter ending September 2024, a stark contrast to the Rs2.91 billion profit (Earnings per Share: Rs13.6) in the same period last year. The company’s financial results reflect a challenging quarter, marked by shrinking margins and rising operating expenses.
Financial Performance Overview
Shell Pakistan’s revenue declined by 6.3% to Rs102.16 billion compared to Rs109.08 billion in the same period last year (SPLY). This revenue contraction, along with a significant drop in gross profit, underscores the hurdles the company faces.
| Financial Metric | Q3 2024 / Q3 2023 (% Change) |
|---|---|
| Revenue | Rs102,157,450 / Rs109,077,998 (-6.34%) |
| Gross Profit | Rs5,434,083 / Rs11,417,171 (-52.40%) |
| Net Profit/ (Loss) | Rs(727,108) / Rs2,910,419 |
| Earnings/ (Loss) Per Share (Rs) | (2.78) / 13.60 |
Decline in Gross Margins
Shell’s gross margin decreased to 5.3% in Q3 2024 from 10.5% in Q3 2023, impacted by lower revenue and only a slight decrease in the cost of sales.
| Gross Profit Metrics | Q3 2024 / Q3 2023 (% Change) |
|---|---|
| Gross Profit | Rs5,434,083 / Rs11,417,171 (-52.40%) |
| Gross Margin | 5.3% / 10.5% |
Rising Operating Expenses
The company faced higher operational costs, with administrative expenses up by 18.2% and selling and distribution expenses increasing by 12.6%.
| Expense Category | Q3 2024 / Q3 2023 (% Change) |
|---|---|
| Administrative Expenses | Rs2,272,235 / Rs1,922,699 (+18.18%) |
| Selling & Distribution Expenses | Rs3,697,444 / Rs3,284,990 (+12.56%) |
