KARACHI: After incurring inventory losses for a long time, Shell Pakistan has managed to turn things around, reporting a net profit of Rs21.26 million in the quarter ending March 31, 2016 against net loss of Rs750.07 million in the same quarter last year, according to a bourse filing on Thursday.
This translated into earnings per share of Rs0.20 compared to loss per share of Rs7.04 in the corresponding quarter of the previous year.
Tariq Saeed, the company secretary, said in a notification to the Pakistan Stock Exchange that the company continued to make progress on improving its operational performance during the quarter, registering profitable delivery in all its chosen focus segments.
“Downward oil price movements continued to impact our otherwise robust operational performance,” he said.
“The financial performance of the company continues to be effected by low regulated fuel margins, continued significant impact of the turnover tax mechanism and financial burden resulting from overdue receivables from the government,” he said.
As of March 31, 2016, the company still owned Rs4.01 billion as receivables, he said.
Net sales dropped 4% to Rs56.66 billion in the quarter under review from Rs59.21 billion in the same quarter last year.
Other income rose four-fold to Rs167.10 million. The share of profit of associate (net of tax) increased 26% to Rs138.52 million.
Published in The Express Tribune, April 22nd, 2016.
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