Shell Pakistan’s profit nearly doubles in first half

Shell Pakistan Limited’s profit after tax in the first half of the year nearly doubled to Rs1,407.199 million (US$16.2 million), from Rs720.210 million (US$ 8.2 million) in the same period in 2010. Earnings per share rose to Rs20.55 (US$.23) from Rs 10.52 (US$.12) the previous year. Profit before taxation rose to Rs2.671 billion (US$30.5 million) for the half year period, up from Rs1.762 billion (US$20.1 million) in 2010. “This increase is primarily due to favorable movements in the international oil price during the period with support from improved performance in the export business of the company and reduction of operating costs,” said Sarim Sheikh, chairman of Shell Pakistan Limited. However, the increased performance is offset by very low regulated margins set by the government for gasoline and diesel fuel. Added to these are high financing costs due to delays in the recovery of funds of indirect taxes, as well as subsidy claims from the government. “We continue to emphasize it is imperative for the government to urgently address the unfavorable impacts of low margins in Oil Marketing Company’s margins and delay in settlement of government receivables,” Sarim said. (August 19, 2011)