National Refinery initiates production, supply of bunker fuel

National Refinery Limited (NRL), the country’s only lube refinery, has commenced the production and supply of very low sulphur furnace oil (VLSFO), also called ‘bunker fuel’.

The company shared the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.

“National Refinery Limited is pleased to announce the production and supply of very low sulphur furnace oil (VLSFO) also known as ‘bunker fuel’ after necessary changes in crude mix and adjustments in the production process,” read the notice.

NRL shared that VLSFO is a premium product and environment-friendly fuel compulsory for all sea vessels under the International Maritime Organization (IMO) 2020, Regulation.

“Due to limited availability, its demand is stable. The supply of VLSFO shall assist in maintaining sustainable refinery operations independent of seasonal factors,” it added.

NRL is engaged in the manufacturing, production and sale of a variety of petroleum products and lubricants. Its key fuel products include motor gasoline, kerosene, JP-1, JP-8, Euro II grade HSD, LPG, and furnace oil. Other products include Naphtha that is exported, sulphur, base oils, and asphalt and speciality products.

As per latest financial results, the refinery sustained a Loss After Tax (LAT) of Rs4.63 billion in FY23, as compared to a Profit After Tax (PAT) of Rs9.07 billion in the same period last year.

Amid the losses, NRL posted a loss per share of Rs55.81, compared to earnings per share of Rs113.53 reported in the corresponding period last year.

NRL was incorporated in 1963 and was privatised in the year 2005. After privatisation, NRL was made part of the Attock group.