July-September: Pakistan Refinery sustains Rs2.4bn in losses

Pakistan Refinery Limited (PRL), a subsidiary of the Pakistan State Oil Company Limited (PSO), sustained massive losses to the tune of Rs2.35 billion for the quarter ended on September 30, 2024.

During the same period last year, PRL posted a profit-after-tax (PAT) of Rs4.48 billion.

According to a notice to the Pakistan Stock Exchange (PSX) on Friday, the board of directors met on October 18 to review the company’s financial and operational performance.

The refinery recorded a Loss per share (LPS) of Rs3.73 in 1QFY25 as compared to Earnings per share (EPS) of Rs7.11 in 1QFY24.

The loss comes on the account of lower revenue and higher operating cost recorded in the period.

Pakistan Refinery profit jumps 123% in FY24

During 1QFY25, PRL revenue from contracts decline to Rs82.1 billion compared to Rs93.4 billion in same period last year, an increase of over 12%.

As a result, the company saw its gross profit plummeted by over 99%, clocking in at a meagre Rs56.3 million in 1QFY25, compared to Rs8.9 billion in 1QFY24.

PRL’s other operating expenses increased exponentially by over 100% to Rs1.8 billion in 1QFY25, compared to Rs890.9 million in same period last year.

On the other hand, the company’s other income declined to Rs608.2 million in 1QFY25, in comparison to Rs752.3 million in the previous year.

Consequently, PRL posted an operating loss of Rs1.7 billion in 1QFY25, as compared to operating profit of Rs8.4 billion last year.

The company’s loss before tax from refinery operations stood at Rs2.5 billion in 1QFY25, as compared to a profit before tax Rs7.5 billion last year.

Pakistan Refinery Limited was incorporated in Pakistan as a public limited company in May 1960.

The refinery’s current capacity stands approximately at 50,000 barrels per day of crude oil into petroleum products, such as furnace oil, high-speed diesel, kerosene oil, jet fuel and motor gasoline, among others.