Fakiha Tariq

Shell Pakistan Limited (Shell) posted a 48% increase in gross sales and a 42% increase in gross profit in the calendar year 2022 as compared to 2021, WealthPK reports. Shell reported gross sales of Rs418 billion in 2022 and a gross profit of Rs33 billion, resulting in a gross profit ratio of 8%. However, the company posted a net loss of Rs72 million and a net loss ratio of 0.02% in 2022. Shell reported a loss per share of Rs0.34 in 2022.

The oil marketing firm’s revenues stood at Rs282 billion and gross profit at Rs23 billion in 2021. The company posted a net profit of Rs4.4 billion in 2021, which turned into a net loss in 2022.

Quarterly review of the year 2022 reveals that the company secured the highest sales and gross profit in the second quarter (April-June). Shell posted sales of Rs84 billion in the first quarter, which increased to Rs114 billion in the second quarter. The company posted sales of Rs109 billion and Rs110 billion in third and fourth quarters, respectively.

The company reported its highest gross profit of Rs18 billion in the second quarter, followed by Rs9.3 billion in the first quarter. The gross profit declined gradually in the third and fourth quarters to Rs5.2 billion and Rs437 million, respectively.

The sales of Rs418 billion and gross profit of Rs33 billion in the year 2022 were the highest since 2018. The company posted sales of Rs214 billion, Rs234 billion and Rs194 billion, respectively, in CY18, CY19 and CY20.

In terms of gross profits, Shell had posted a gross profit of Rs15.4 billion, Rs15 billion, Rs7.5 billion and Rs23 billion, respectively, in CY18, CY19, CY20 and CY21.

Shell has struggled in terms of net profit/loss, reporting a net profit only once in 2021 over the last five years. In CY18, CY19 and CY20, the company reported consecutive net losses of Rs1.1 billion, Rs1.4 billion and Rs4.8 billion, respectively.

Credit: Independent News Pakistan-WealthPk