KARACHI, Aug 19: Shell Pakistan Limited posted after-tax profit at Rs1.3 billion for the year ended June 30, 2003, which represented growth of 18 per cent over taxed profit amounting to Rs1.1 billion the previous year.

The board of directors, which met on Tuesday, also recommended the final dividend at Rs25.50 per share, which together with the interim dividend declared in February 2003 would bring the total dividend for the financial year 2002-03 to Rs35 per share. A year ago, the board had declared full year payout at Rs18 per share, “due to very high investment commitments of Rs1.8 billion in the latter part of 2002.”

Although the payout of Rs35 per share for the latest year, represented the entire earning per share (eps) of Rs35.79 per share, the Shell Pakistan stock shed Rs20.90 in the day’s trading on Tuesday to close at Rs460, with volume of 1.6 million shares. The company has called the annual shareholders’ meeting on September 25.

A statement issued by Shell Pakistan stated that growth in profit for the year to June 30, 2003 had mainly resulted from increase in distributors’ margins coupled with shift in sales mix to higher margin products, but stock losses in the quarter to end June caused the full year to be lower than the nine-month figure already disclosed.

The company said it was the second largest Oil Marketing Company with market share of 30 per cent of white oil products. During the year, the company said, it had captured a further 4 per cent share in the lubricants market raising its share to 44 per cent. Shell’s fuel sales declined by 6.3 per cent, compared to an industry average of 6.8 per cent. The company’s average throughput per petrol station was said to be 2.2 million litres as compared to the industry average of 1.6 million litres.

Mr. Rahmatullah, chairman of the board, highlighted the company’s proactive approach to developing CNG business as part of the overall retail strategy with 54 sites now offering CNG to consumers, the company statement said, and added that Shell was providing refuelling facilities for the first batch of CNG fitted business plying in Karachi.

During the year, the company said, it had disbursed the final tranche of its investment in White Oil Pipeline Project amounting to Rs1.2 billion, thereby raising cumulative investment of the company in the project to Rs1.9 billion. Additional capital expenditure during the year stood at Rs814 million, compared to Rs703 million last year.

Following the deregulation of High Speed Diesel (HSD) imports from September 1, 2002, the company said 20 cargoes of HSD were imported by Shell Pakistan on various vessels, including MT Gulf Grace, which is a year 2000 vessel and has “the highest standards of Health and Safety including a double hull feature, which ensures double shielding from accidents and spillage.”