Shell Pakistan Limited recently came under the limelight as the company announced the financial results for the year ending at December 31, 2016. It has been a good year for Shell Pakistan as it experiences a surge in its profit by seven times in FY16 compared to FY15. As if this isn’t enough, the earnings for last fiscal year are higher than the annual earning of the firm in the past ten years.
As per the reports the company has posted an after tax profit of approximately PKR 6,764 million and announced a final dividend of PKR 28 per share in addition to interim dividend of PKR 6. Shell Pakistan Managing Director Jawwad Cheema stated, “It has been a remarkable year for Shell Pakistan, both in terms of financial performance and in the value offering to our customers. We delivered a record profit of PKR 6.7 billion, the highest in two decades and a six-fold increase since last year.”
Cheema said, “This year we also brought the best of our global fuel portfolio offering – Shell V-Power for the Pakistani customer. This was made possible due to the government’s decision to open up the market by deregulating premium fuel, and allowing OMC’s to enhance product offering and choices for customers.”
Many analysts believe that one factor that helped the company experience increase in profits is the increase petroleum product sales especially that of retail fuels such as diesel and petrol. It is pertinent to note that the consumption of petroleum in the country has increased significantly over the past two years on the back of lower oil prices despite the government not passing on the entire benefit to consumers.
The figures mentioned above are sufficient to present bright future of the company. Also, the company’s managing director said that the company is looking forward to help the government in bringing further policy and infrastructural improvements in the sector, which would enable the company and other market players to play a better role in building Pakistan’s energy future.