Driven by a massive increase in revenue, Pakistan Refinery Limited (PRL), a subsidiary of the Pakistan State Oil Company Limited (PSO), witnessed a remarkable turnaround as its profit-after-tax (PAT) clocked in at Rs2.03 billion in the quarter ended December 31, 2023.

In the same period last year, PRL posted a loss after tax of Rs268 million.

According to a notice to the Pakistan Stock Exchange (PSX) on Thursday, the board of directors met on February 1 to review the company’s financial and operational performance and recommended a nil dividend.

Earnings per share (EPS) were recorded at Rs3.22 in 2QFY24 as compared to LPS of Re0.43 in the same period last year (SPLY).

The refinery revenue from contracts rose to Rs88.81 billion compared to Rs57.24 billion in SPLY, an increase of nearly 55%.

The company saw its gross profit increase by an exponential 4292%, clocking in at Rs4.57 billion in 2QFY24, compared to Rs104.08 million in SPLY. This translates into a profit margin of 5.14% in 2QFY24, a massive improvement from a mere 0.18% recorded in same period previous year.

On a consolidated basis, ‘other income’ also increased 55% to Rs1.57 billion in 2QFY24, compared to Rs1.01 billion in SPLY.

However, the company’s operating expenses also shot up to Rs2.13 billion in 2QFY24, in comparison to Rs279.87 million in SPLY.

Despite the increase, PRL’s operating profit rose to Rs4 billion in 2QFY24, as compared to a meagre Rs832 million in SPLY, a massive jump of 382%.

The company profit before tax from refinery operations stood at Rs2.94 billion in 2QFY24, as compared to Rs164.5 million in the same period last year, an exponential increase of 1,695%.

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.