KARACHI: The Board of Directors of Shell Pakistan Limited (SPL) announced financial results for the year ended December 31, 2020. The company posted a loss after tax of Rs 4,821 million for 2020 compared to the loss of Rs 1,485 million in 2019.

The second half of 2020 saw significant recovery with a profit after tax in comparison to a very tough first half of the year 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; and 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. In addition, the government upgraded the fuel grade to Euro-V standards from Euro-II standards which was introduced in 2016-17. This will pave way for cleaner air quality in Pakistan as a result of lower motor vehicle emissions.

SPL decided to issue 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.

Shell Pakistan continues its focus on driving competitive business plans to deliver top quartile business performance and play a key role in developing Pakistan’s energy future.—PR

Copyright Business Recorder, 2021