Hascol’s losses mount to Rs13.1bn in 9MCY23

Despite higher net sales and gross profit, Hascol Petroleum Limited sustained a massive loss after tax (LAT) to the tune of Rs13.1 billion in the nine-month period ended September 30, 2023, an increase of 39%, compared to loss of Rs9.4 billion reported in the same period last year, showed the company’s consolidated financial results on Friday.

Resultantly, loss per share (LPS) of the company stood at Rs13.11 in 9MCY23, as compared to LPS of Rs9.43 in same period last year.

According to the results provided to the Pakistan Stock Exchange (PSX) on Friday, Hascol’s net sales during the nine month period rose to Rs125.68 billion compared to Rs47.88 billion in the SPLY, which equates to a nearly 163% increase.

The company’s gross profit increased by over 93% clocking in at Rs5.59 billion in 9MCY23, compared to Rs2.89 billion in SPLY.

However, an increase in operating expenses, finance cost and massive exchange loss of nearly Rs6.39 billion pushed the OMC’s earnings in the red.

Hascol’s cost of finance increased to Rs7.74 billion in 9MCY23, as compared to Rs5.84 billion in SPLY, a jump of nearly 33%. The higher finance cost during the period could be attributed to the rise in interest rate during the period.

Meanwhile, the company also sustained exchange losses in 9MCY23, clocking in at Rs6.39 billion as compared to Rs3.24 billion in same period last year, an increase of over 97%.

Back in June, the Board of Directors of Hascol allowed Taj Gasoline (Private) Limited to carry out due diligence of the company.