National Refinery sustains loss of Rs4.5bn in 2QFY25

National Refinery Limited (NRL) registered a massive loss of Rs4.49 billion during the quarter that ended December 31, 2024.

The amount is lower than the loss posted in the same period of the previous fiscal year when it stood at Rs7.86 billion.

Resultantly, the company’s loss per share (LPS) clocked in at Rs56.23 in 2QFY25 as compared to LPS of Rs98.24 in the same period last year (SPLY).

The announcement was followed by the share price plummeting at the stock exchange, hitting a low of Rs252.5. At the time of this report, NRL’s share was at Rs254.3 with a fall of Rs7.5 or 2.86%.

During the period under review, the refinery’s revenue from contracts declined to Rs98.93 billion compared to Rs103 billion in SPLY, a decrease of nearly 4%.

National Refinery suffers massive Rs15.8bn loss in FY24

Despite lower revenue, National Refinery paid higher taxes to the tune of Rs24.07 billion during the quarter, as compared to Rs21.28 billion in the same period last year.

Consequently, NRL’s net revenue stood at Rs74.86 billion, compared to Rs81.72 billion in same period last year.

The company’s cost of sales declined to Rs76.3 billion in 2QFY25, a significant decrease of over 16%, compared to Rs91.32 billion in 2QFY24.

Resultantly, the company recorded a gross loss of Rs1.45 billion in 2QFY25, compared to a gross loss of Rs9.59 billion in SPLY.

The refinery’s ‘other income’ increased by 305% to Rs231.93 million in 2QFY25, compared to Rs57.16 million in SPLY.

Consequently, NRL posted an operating loss of Rs1.61 billion in 2QFY25, as compared to an operating loss of Rs9.55 billion in SPLY.

Adding to the losses was a net finance cost of Rs2.59 billion, which the company incurred in the quarter ending December 31, 2024.

Consequently, the company loss before tax and levies from refinery operations stood at Rs4.2 billion in 2QFY25, compared to an LBT of Rs11.53 billion in the same period last year.

Incorporated in Pakistan on August 19, 1963, as a public limited company, the company is engaged in the manufacturing and sale of a large range of petroleum products. The NRL refinery complex comprises three refineries i.e. two lube refineries, and a fuel refinery.

The company also commissioned Diesel Hydro Desulphurisation (DHDS) and Isomerisation (ISOM) units during financial years 2017 and 2018, respectively.