KARACHI, Aug 20: The Board of Directors of Shell Pakistan Limited (SPL) has recommended a final dividend of Rs14 per share, which together with the interim dividend of Rs4 per share declared on February 7, 2002, makes for a total distribution of Rs18 per share for the financial year ended June 30, 2002.

The announcement of dividend was made possible following the increase in gross sales by five per cent from last year to a record Rs78.9 billion, largely owing to higher volumes which rose by six per cent to 3.7 million tons.

The overall profit after tax increased by one per cent to Rs1.06 billion.

On Tuesday, Shell Pakistan released its audited financial statements for the financial year ending June 30, 2002, in the Board of Directors meeting held on Monday at Shell House, Karachi.

Managing director for Shell Pakistan and country chairman for Shell Companies in Pakistan, Farooq Rahmatullah stated that the company has demonstrated tremendous resilience in meeting the challenges of a volatile economic environment and reduced economic activity.

Earlier this year, Shell Petroleum Company Ltd, UK, increased its investment in Shell Pakistan Ltd by purchasing an additional 5.744 million shares at a cost of $22.3 million, reiterating Shell’s continued confidence in the country’s economic progress and in the buoyancy of the oil and gas sector.

Despite a slump in overall activity, the aviation business performed well as some new contracts were won which offset the decline in the foreign airline business. In the power generation sector, the company successfully negotiated incidental contracts for supplying furnace oil sales of which increased by 70 per cent over the last year.

Shell’s lubricant brands continued to enjoy strong brand preference, contributing towards profitability. Despite a sluggish market growth, increased competition from new entrants and the continued influx of smuggled products in the market, SPL was able to boost lubricant volumes by 5 per cent.

Last year saw partial deregulation and the first import of high speed diesel (HSD) by SPL. During the current year, the company imported 20 cargoes of HSD at competitive prices through open tendering in the international oil markets.

On the retail business front, SPL completed 50 new sites this year bringing the total number of fuel sites with Shell International standards to 559. Responding to higher demand for cheaper energy, Shell also opened another 15 CNG sites during the year, enhancing its position in the market with a total of 43 CNG sites.

Investment commenced in the White Oil Pipeline, the largest infrastructure project currently being undertaken in Pakistan and one which will transport fuel more safely and at a lower cost than road transportation. Shell Pakistan’s participation in this project, as the second largest equity holder with a 26 per cent shareholding, reflects its commitment to the development of Pakistan.