Home »Brief Recordings » Oil & Gas Marketing Companies: SHELL GAS LPG (PAKISTAN) LIMITED – Year Ended 30-06-2003

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  • Jan 5th, 2004
  • Comments Off on Oil & Gas Marketing Companies: SHELL GAS LPG (PAKISTAN) LIMITED – Year Ended 30-06-2003
During the year under review, the company has substantially increased its turnover and profitability. Net sales turnover increased by 34.67% to Rs 627.20 million as compared to Rs 465.70 million booked in the preceding year. Sales volume increased by 5.6% Shell brand is now well established in the LPG market of the country.

The company has started getting the benefits of acquisition of Sui Northern L.P.G assets in late 2001. Gross Profit increased to Rs 122.20 million from Rs 58.33 million registering 109.5% increase. Gross margin improved to 19.48% from 12.52% in the preceding year. "Other" income increased by Rs 8.5 million.

The balance sheet is awash with cash and bank balances improved to Rs 18.84 million. The balance in its account of cylinder and regulator deposits increased to Rs 273.11 million from Rs 252.39 million posted in the previous year.

Nearly 64% of "other" income came from profit from Defence Saving Certificates. The company's net profit registered remarkable growth to Rs 41.98 million from Rs 1.72 million in the preceding year. For the first time its operating profit is higher than other income.

Shell Gas LPG (Pakistan) is a limited liability company incorporated in the province of Sindh.

Out of total 2.695 million shares of the company 67.38% stock of the company is foreign shareholding of Shell Petroleum Company Limited London.

Its 351 individual investors owned 14.95 of the company's stock. Three financial institutions held 13.83% of its stock. Two insurance company held its 3.73% stock.

The company's shares are quoted on Karachi and Lahore Stock Exchanges. It was listed at Karachi Stock Exchange in 1982.

At present the market price of the Shell Gas LPG share is Rs 240 per share which is 24 times of its par value of Rs 10.

During the last 52 weeks the price of the share made substantial appreciation to Rs 258.50 per share from Rs 115 per share.

During the year ended 30th June 2003 (FY 2002-03) the company posted net turnover of Rs 627.20 million (FY 2001-02: Rs 465.70 million after deductions of sales tax and discounts.

Net turnover increased by Rs 161.5 million. The significant contribution to sales came because sales volumes increased by 5.6%.

It is evident that the investments the company made in the past three years in developing its customer base is also an important factor in helping the company achieve this increase in revenues.

It has been reported that the Shell brand is now well as established in Pakistan LPG market and now its market reach includes the major districts of Sindh, Punjab and NWFP provinces.

The Shell brand brings with it, a strong customer value proposition (CVP) which includes product and safety training for distributory and end customers, as well as assured availability, stable pricing, home delivery, one stop shop convenience, and free equipment inspection and servicing.

The company's strategy to expand the Shell net work led to cover 50 territories as compared to 32 territories last year.

It in Shell Gas continues to look for ways of further improving business processes and service quality. The company focused mainly on Business Process Standardised to improve efficiency of operations.

Business Process Standardisation calls for applications rationalisations, which in turn calls for infrastructure consolidation.

To consolidate the infrastructure the company moved to Global Infrastructure Desktop (GI-D) environment. GI-D delivers consistency and standardisation as a result of scale economies and enables global communication, organisational flexibility, knowledge sharing and improved information security.

To rationalise application portfolio and standardise business processes in a more cost effective manner, Shell Gas also initiated a project for implementation of an Enterprise Resource Planning (ERP) system during the year.

The business processes were re-engineered to help business achieve new heights of operational excellence and customer satisfaction.

It has been further reported that the new IT platform is being integrated with Shell Pakistan Ltd systems with outsourcing of back office operations to them on cost sharing basis.





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Performance Statistics (Million Rupees)

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30 June 2003 2002

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Share Capital-Paid-up: 26.95 26.95

Reserves & Surplus: 111.39 96.35

Shareholders Equity: 138.34 123.30

Cylinder & Regulator Deposits: 273.11 252.39

Deferred Taxation: 2.56 2.82

Current Liabilities: 160.55 183.17

Fixed Assets: 349.06 362.98

L.T. Investments & Loans: 0.60 0.96

L.T. Deposits: 24.02 18.96

Current Assets: 200.88 178.78

Total Assets: 574.56 561.68

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Sales, Profit & Pay Out

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Turnover-Net: 627.20 465.70

Gross Profit: 122.20 58.33

Operating Profit: 53.42 0.47

Other Income: 25.04 16.54

Financial (Charges): (6.80) (10.14)

(Depreciation): (48.49) (36.63)

Profit Before Taxation: 64.56 5.45

Profit After Taxation: 41.98 1.72

Dividend Cash @ Rs 10/share

(2002:Rs 3/share): (26.95) (8.09)

Earnings Per Share (Rs): 15.58 0.64

Share Price (Rs) Dated 01.01.2004: 240.00 -

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Financial Ratios

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Price/Earning Ratio: 15.40 -

Book Value Per Share: 51.33 45.75

Price/Book Value Ratio: 4.67 -

Debt/Equity Ratio: 0:100 0:100

Current Ratio: 1.25 0.98

Asset Turn Over Ratio: 1.09 0.83

Days Receivables: - 3

Days Inventory: 6 1

Gross Profit Margin (%): 19.48 12.52

Net Profit Margin (%): 6.69 0.40

R.O.A. (%): 7.30 0.31

R.O.C.E. (%): 10.14 0.45

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Filling Capacity & Actual Bottling (Metric Tons)

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A) LPG Bottling Per Day On Single Shift Basis

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Installed Capacity: 173 173

Bottling Average Daily: 86.47 70.08

Capacity Utilization (%): 49.98 40.51

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B) Under utilization of capacity was because bottling was done as per availability of base stock.

COMPANY INFORMATION: Chairman: Farooq Rahmatullah; Chief Executive: Hassan Madani; Company Secretary: Abdul Waheed Mughal; Registered Office: 6 Chaudhry Khaliquz Zaman Road Karachi-75530.

Copyright Business Recorder, 2003


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