Result Preview of HUBCO and SHELL by AZEE Research

Market Overview Market witnessed an overall mix to volatile trading week as index juggled between negative & positive zone finally ending in negative zone down by almost 285 points.Benchmark KSE-100 index decreased by 285.30 points to close at 35,937.33 points.

SHELL & HUBC: Result Preview The board meeting for the 1HCY15 financial results of Shell Pakistan limited (Shell) is scheduled to be held on August 19, 2015, while Hub Power Company Limited (HUBC) is planned to hold their board meetings on August 20, 2015 and below we present our results expectation for both companies.

SHELL expected to post PAT of Rs 537mn (EPS: Rs 5.02) The bottom line of company is expected to drop by 27% at Rs 537 million (EPS: Rs 5.02) in 1HCY15 compared to Rs 731 million (EPS: Rs 6.83) for the corresponding period last year due to due to plunge in global crude oil pieces which incurred inventory losses of around Rs 1 billion (after tax impact of Rs 6.58/share) and lower other income.

However in 2QCY15, we expect company to post profit after taxation of Rs 1,290 million (EPS: Rs 12.05) compared to Rs loss after taxation of Rs 753 million (EPS: Rs 5.84) in 1QCY15 likely due to inventory gains of Rs 417 million. Net sales is expected to decline by 16% to Rs 109.29 billion versus Rs 129.74 billion owing to lower product pries despite higher volumetric sales of 18%.

Gross profit likely to increase by 5% to Rs 5.34 billion in 1HCY15 against Rs 5.07 billion in 1HCY14. Shell’s gross margin is likely to reach 4.9% during 1HCY15 versus 3.9% same period last year, an increase of 1pps.

Read Complete Report Below

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