Inventory losses due to declining oil prices impact Shell Pakistan’s bottom line

The Board of Directors of Shell Pakistan Limited announced the financial results for the year ended December 31, 2014. While the Company reported achievements in operational performance, increases in market share and growth profitability in its Retail, Lubricants and Aviation businesses, its overall financial results were heavily impacted by exceptionally high inventory losses due to sharp decline in oil prices. As such, the Company posted a net loss after tax of Rs. 1,067 million against a profit after tax of Rs.1,061 million in the same period last year. However, as the underlying profitability of the Company was robust, the BOD declared a cash dividend of Rs. 8 per share.