Rupee devaluation impacts Shell Pakistan’s bottom line
Aug 21, 2019
The Board of Directors of Shell Pakistan Limited announced the second quarter results for the company on 21st August. The Company posted an after tax loss of PKR 1,704 million compared to the profit of PKR 247 million made in the same period last year.
While the Company was able to maintain and grow its market share in a declining industry, its overall financial results were impacted by some of the macro-economic challenges being faced by the country, primarily due to another unprecedented devaluation of the rupee and volatility in the international oil prices. Being part of an import dependent industry where a large percentage of costs and payables are denominated in foreign currency, this devaluation had an impact on the cost base and, in turn, on financial performance.
The Company continues its focus on driving competitive business plans to deliver top quartile business performance.