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Daily Times (Pakistan): Shell posts 20% rise in net profit: “But he said the company is losing its market share” (ShellNews.net)

 

Staff Report

20 August 04

 

KARACHI: Shell Pakistan Limited, country’s second largest oil marketing company, on Thursday announced full-year interim cash dividend of 35 percent after registering a 20.2 percent growth in net profit.

 

In a statement to the Karachi Stock Exchange (KSE), the company said its full-year 2003-04 net profit stood at Rs 1.508 billion compared to Rs 1.254 billion in the same period last year.

 

“Company’s net profit is improved due to inventory gains in the fourthquarter,” said Abdul Rasheed, an analyst at Investcap and Securities, a local brokerage house.

 

But he said the company is losing its market share but profit of the company would improve in the next fiscal year because of high international oil prices.

 

The company has announced a final cash dividend for the year ended June 30, at the rate of Rs 28.50 per share, or 285 percent.

 

Analysts said the company has declared 35 percent cash dividend this year.

 

Sales of the company improved by 1.29 percent to Rs 90.107 billion in the fiscal year 2003-04, compared to Rs 88.959 billion in the same period last fiscal year.

 

The company said its total revenues increased by Rs 1.215 billion or 1.35 percent to Rs 90.663 billion in 2003-04, compared to Rs 89.448 billion in 2002-03.

 

It said cost of products sold went up by 1.29 percent to Rs 72.973 billion compared to Rs 72.049 billion in the same period a year ago.

 

Operating profit of the company improved 21.2 percent to Rs 2.401 billion compared to Rs 1.978 billion corresponding period last year whereas financial charges of the company increased by 43.5 percent to Rs 73.8 million from Rs 51.4 million last year.

 

“Shell has lost market share to PSO and other small competitors in the last financial year,” said Abdullah Amin, an analyst at AKD securities.

 

http://www.dailytimes.com.pk/default.asp?page=story_20-8-2004_pg5_9 


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