Fakiha Tariq

Shell Pakistan Limited (Shell) earned hefty profits during the second quarter (Q2), but experienced high stock return volatility in the third quarter (Q3) of 2022, the research conducted by WealthPK shows. Shell’s traded volume on Pakistan Stock Exchange stood at 574,918 shares in Q1, but that dipped to 369,604 shares in Q2 of 2022. However, the highest traded volume of 1,126,169 shares was reported during Q3. The green and blue bars in the graph below represent the monthly and quarterly traded volume of Shell during the period under review.

Shell quarterly market capitilisation

By the end of Q1, the market price of share was reported to be Rs116 and the market capitalisation of Rs24 billion. The market share price then kept increasing, ultimately resulting in rising market cap values of Rs25 billion and Rs26 billion in Q2 and Q3, respectively.

Shell quarterly profitability analysis

Shell performed well during the Q2 in terms of profit making compared to Q1 and Q3. During Q1, the company made gross sales of Rs84 billion and gross profit of Rs9 billion. The gross profit ratio and net profit ratio came out to be 11.08% and 2.46% during Q1, respectively. Shell’s earning per share (EPS) stood at Rs9.72 in Q1.

In the second quarter, the net sales increased to Rs114 billion and led to a gross profit margin of 16.28%. Shell earned a net profit of 4.76% during Q2, which was the highest compared to the first and the third quarter of 2022. EPS also grew to Rs25.36 in Q2. The third quarter of 2022 saw a decline in gross profits of 4.77% compared to Q1 and Q2. As a result, the burden of operational cost resulted in a net loss of 4.24% and loss per share of Rs21.7.

Shell stock returns – quarterly comparison

During the first quarter, Shell experienced maximum of positive returns on the stock price barring a few deep dips. The stock returns remained steady around the neutral 0 and also did not show any sort of high volatility. In January 2022, the average returns were positive. Whereas, negative stock returns were reported in February 2022 and March 2022. 

The second quarter of 2022 was the period of high returns with the multiple top spikes observed. However, the overall returns graph did not depict any rapid volatility during Q2.

In August-22, average returns were positive for the investors during Q3. In comparison to Q1 and Q2, stock returns in Q3 were a bit volatile, but with high positive values.

Credit : Independent News Pakistan-WealthPk