Why did the profit margin of “Shepna” decrease? – Tejarat News
According to Tejarat News, the 6-month financial statements of listed companies were published in early November, and this issue has fueled the downward trend of the stock market indices. But in the meantime, the shares of some companies that have given a good report on their 6-month performance have also been down. One of these companies was Isfahan Oil Refinery, which was able to increase its net profit in the first 6 months of this year.
Reviewing the 6-month financial statements of Isfahan Oil Refining shows that the company has been able to increase its income to some extent due to the increase in sales. So that the income from the sale of the company’s products has reached 178 thousand 476 billion Tomans in the first 6 months of this year, with a slight growth of 0.5%, from 177 thousand 531 billion Tomans in the first 6 months of 2011. But the issue that is raised in the meantime is the issue of the small growth of the company’s income compared to the increase in the amount of Shepna’s sales; Because during this period, the sales rate of the company’s products has decreased by more than 10%.
The total cost of Shepna operation
Another issue that should be mentioned is the production cost of Isfahan oil refining. Simultaneously with the decrease of crack spreads, the cost of production of refined products increased. Because the price of the dollar has been associated with a relative growth over the past year, and this, of course, has increased the cost of production.
In this way, the total cost of goods sold by the company increased by 1.8% in the first 6 months of this year compared to the same period last year and reached 154,616 billion tomans. The same difference between the increase in income and the cost of the company in this period caused Shapna’s gross profit to decrease by seven percent in this period.
Profitability status of Shepna in the first half of the year
Based on what was said, the gross profit of Isfahan oil refining in the first 6 months of this year has reached 23,859 billion tomans from 25,638 billion tomans in the first 6 months of last year. But the issue that was able to save the company’s operating profit is the issue of income of five thousand and 75 billion tomans from the place of “other operating income”. The same issue caused Shepna’s operating profit to reach 26,331 billion tomans from 24,554 billion tomans with a growth of 7.2%.
Finally, it should be said that Isfahan Oil Refinery was able to increase its net profit by 8.7% in this period, from 21 thousand 125 billion tomans in the first 6 months of last year to 22 thousand 953 billion tomans. In this way, EPS of Shepna has reached from 93 tomans to 101 tomans in this period.
Shepna’s production and sales record
As mentioned earlier, the company’s sales volume in the first 6 months of this year increased by 12% compared to the same period last year and reached 11 million and 105 thousand cubic meters from 9,884,000 cubic meters. It should be mentioned that this increase in the sales amount of the company is due to the 6.6% growth of Shepna production in the first 6 months of this year compared to the same period last year.
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