Shell Pakistan Limited –Financial Results 9m CY09
Shell Pakistan Limited (SHEL) recently announced its financial results for 9mo CY09. The company posted a PAT of PKR 1,703mn (EPS: PKR 24.88) in 9mo CY09; 24% lower YoY compared to PKR 2,252mn (EPS: PKR 12.89) in the corresponding period last year. The decline comes with the reversal of inventory gains after crude oil prices had peaked at USD 145/bbl in Jul’08.
The stock is currently trading at PKR 270.44 per share. Moving forward, we expect crude oil price to maintain their gradual upward growth in line with the recovering global economy. Hence, POL product prices for regulated products and their respective margins will remain stable at the end of CY09. In CY10, SHEL will look to offset its recent decline in FO sales having signed FO supply agreements with the Nishat Power Plant and Nishat Chunian Power Plant, expected to come on board in October 2009 and June 2010.