Karachi: The Board of Directors of Shell Pakistan Limited (SPL) has announced the financial results for the year ended on December 31, 2020. The company posted a loss after tax of Rs 4.821 billion for 2020, compared to the loss of Rs 1.485 billion in 2019.
The second half of 2020 saw a significant recovery with a profit after tax, in comparison to a very tough first half of the year. The first half was primarily affected by the global pandemic, resulting in declining fuels market and volatility in the international oil prices.
Shell Pakistan recognises the government’s initiative to switch the frequency of petroleum pricing of the country from monthly to fortnightly, basing the same on the Arab Gulf Mean oil prices published in Platts Oilgram. This ensures fair competition and alignment of fuel prices with international pricing trends, smoothing out any volatility caused by the legacy pricing mechanism.
Additionally, the government upgraded the fuel grade to Euro-V standards from Euro-II standards which were introduced in 2016-17. This will pave the way for cleaner air quality in Pakistan as a result of lower motor vehicle emissions.
SPL decided to issue the right shares to ensure a healthy financial and cash position, to meet working capital requirements, and to enhance shareholders’ value. The rights process is expected to be completed by Q1 2021.