Shell Pakistan Limited has reported a loss of Rs4.76 billion for the first quarter ending March 31, 2023, according to the financial results submitted to the Pakistan Stock Exchange (PSX) on Thursday.
The loss can be attributed to a significant increase in expenditures during the quarter. In comparison, the company posted an after-tax profit of Rs2.08 billion in the same quarter last year.
Despite the heavy loss, Shell Pakistan’s sales significantly increased to Rs110 billion for the quarter under review as compared to Rs84.52 billion in the same period last year. The net revenue of the company also surged to Rs108.63 billion for Q1 2023, compared to Rs82.71 billion in the same quarter of the previous year.
The gross profit increased to Rs12.2 billion for the first quarter of the current year, up from Rs9.35 billion in the same quarter of the previous year.
However, the company’s expenses under the head of “other” increased to Rs11.14 billion for the quarter ended March 31, 2023, compared to Rs2.53 billion in the same quarter last year. Additionally, administrative costs rose to Rs2.31 billion, up from Rs1.53 billion.
The board of directors of Shell Pakistan Limited approved the financial results for the quarter ending March 31, 2023, in its meeting held on Thursday, May 4, 2023.
While the increased sales are a positive sign for the company, the heavy loss raises concerns about its financial stability. It remains to be seen how the company plans to address the increase in expenses to ensure its profitability in the future.
READ MORE: Pakistan petroleum sales decline by 47% in April 2023
