Shell Pakistan Limited’s financial results for the year ended December 31, 2011

Karachi: This is to inform you that the Board of Directors in their meeting held at the Registered Office of the Company at 9:30 a.m. on Wednesday March 7, 2012 recommended that the members approve the issue of Bonus Shares in the proportion of one share for every four shares held i.e. 25%. The said bonus shares shall rank pari passu all respects with the existing shares.

Financial Results

The financial results of the company are as follows:

 

(Audited)

(Audited)

Year

Year

ended

ended

December 3l,

December 3l,

2011

2010

Sales 247,506,537 223,813,592
Non-fuel retail
- Others - 1,255
Other revenue 550,168 406,520
———– ———–
248,056,705 224,221,367
Less: Sales lax 28,907,356 26,690,456
———– ———–
Net Revenue 219,149,349 197,530,911
Cost of products sold 206,468,670 185,403,153
———– ———–
Gross Profit 12,480,679 12,127,758
Distribution and marketing expenses 4,141,036 4,524,058
Administrative expenses 3,471,447 3,679,805
———– ———–
4,868,196 3,923,895
Other operating expenses 745,931 738,589
———– ———–
4,122,265 3,185,306
Other operating income 171,144 527,448
———– ———–
Operating profit 4,293,409 3,712,754
Finance costs 2,095,883 1,264,677
———– ———–
2,197,526 2,448,077
Share of profit of associate – net of tax 635,191 596,008
———– ———–
Profit before Taxation 2,832,717 3,044,085
Taxation 1,926,727 1,428,503
———– ———–
Profit after Taxation 905,990 1,615,582
———– ———–
Rupees Rupees
Earnings per share 13.23 23.59

 

The Annual General Meeting of the Company will be held at 10:00 a.m. on Thursday April 19, 2012 at the Sheraton Karachi Hotel, Karachi.

The bonus shares, if approved by the shareholders, will be issued to the shareholders whose names appear in the Register of Members on April 4, 2012.

The Share Transfer Books of the Company shall remain closed from Thursday April 5 to Thursday April 19, 2012 (both days inclusive). Transfers received in order at the office of our Share Registrars FAMCO Associates (Pvt.) Ltd, 1st Floor, State Life Building I.I. Chundrigar Road, Karachi by the close of business on Wednesday April 4, 2012 will be in time for the purpose of issuance of bonus shares to the transferees.

We enclose a copy of the announcement which will be published in the press shortly.

We will be sending you 300 copies of the printed Accounts for distribution amongst the members of the Exchange 21 days before the date of the Annual General Meeting.

You may please inform Members of your Exchange accordingly.

Announcement of Bonus Shares

The Board of Directors at a meeting held on March 7, 2012 has recommended for the year ended December 31, 2011 that the members approve the issue of Bonus Shares in the proportion of one share for every four shares held i.e. 25%. The said bonus shares shall rank pari passu in all respects with the existing shares.

Closure of Books

The Register of Members of the Company shall remain closed and no transfer of shares will be accepted for registration from Thursday April 5 to Thursday April 19, 2012 (both days inclusive). Transfers received in order at the office of our Registrars FAMCO Associates (Pvt) Ltd. 1st Floor State Life Building 1-A, I.I. Chundrigar Road, Road, Karachi by the close of business on April 4, 2012 will be in time for the purpose of issuance of bonus shares to the transferees.

Shareholders are requested to notify our Registrars any change in their addresses promptly. This will ensure that the bonus share certificates are despatched to shareholders at their correct addresses.

Chairman’s Review for the Year Ended December 31, 2011

On behalf of the Board of Directors of Shell Pakistan Limited, I am pleased to share the results of the Company for the above mentioned year.

During 2011 the Company earned a profit after tax of Rs. 906 million against a profit of Rs. 1,615 million in 2010.

This was a year of trying circumstances including high inflation, increasing cumulative Government receivables, rising cost of oil, heightened security concerns and growing cost of doing business in the country. The profitability has been adversely impacted by low margins, soaring financing costs driven by Government receivables and a high effective tax rate of 68% driven by the incidence of minimum tax based on value of turnover.

Outstanding Government receivables continue to be your Company’s toughest challenge and currently stand at Rs. 13,800 million on account of pending price differential claims, sales tax and petroleum development levy refund in our persistent efforts to recover these long overdue receivables resulted in the refund of only Rs. 1,151 million in 2011. An immediate settlement of these dues is and continues to be critical and our top priority.

Your Company has consistently maintained a reasonable dividend payout policy to its shareholders in the past. However, this year keeping in view the difficult cash how Position, the Board has not recommended any cash dividend payout. Nonetheless, the Board is confident of overcoming the current challenges and has recommended issuance of bonus shares in the ratio of one bonus share for every four shares held by means of capitalization of Rs. 171.22 million out of the reserves of the Company. The said bonus shares shall rank parri-passu in all respects with the existing shares of the Company.

We thank our shareholders, customers, partners and staff for their support and commitment to our work in Pakistan. it is through this dedication and the relationship built on trust and performance that Shell continues as your brand of first choice.

For more information, Contact:
Shell Pakistan Limited
Shell House 6,
Ch. Khaliquzzaman Road
Karachi-75530
Tel:  +92 (21) 111 888 222
P.O. Box:  3901 Karachi

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