Despite higher revenues and lower finance cost, National Refinery Limited (NRL), the country’s only lube refinery, registered a massive loss of Rs2.87 billion in the quarter ended March 31, 2024.

In the same period last year, PRL posted a loss after tax of Rs539.67 million.

Resultantly, the company’s loss per share (LPS) ballooned to Rs35.88 in 3QFY24 as compared to LPS of Rs6.75 in the same period last year (SPLY).

The rise in loss can be attributed to an increase in the cost of sales.

During the period under review, the refinery’s net revenue from contracts improved to Rs81.03 billion compared to Rs72.16 billion in SPLY, an increase of over 12%.

Pakistan Refinery suffers Rs1.24bn loss in 3QFY24

However, the company’s cost of sales rose to Rs81.95 billion in 3QFY24, a significant jump of over 27%, compared to Rs64.31 billion in 3QFY23.

Resultantly, the company recorded a gross loss of Rs924.2 million in 3QFY24, compared to a gross profit of Rs7.85 billion in SPLY.

The refinery’s ‘other income’ increased nearly 65% to Rs106.96 million in 3QFY24, compared to Rs64.89 million in SPLY.

Meanwhile, the company’s operating expenses declined to Rs399.88 million in 3QFY24, in comparison to Rs698.58 million in SPLY, a decrease of nearly 47%.

However, despite the decline in expenses and an increase in other income, NRL posted an operating loss of Rs1.22 billion in 3QFY24, as compared to an operating profit of Rs7.21 billion in SPLY.

Adding to the losses was a net finance cost of Rs2.6 billion, which the company incurred in the 3QFY24.

Consequently, the company loss before tax from refinery operations stood at Rs3.82 billion in 3QFY24, as compared to an LBT of Rs595.22 million 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, production and sale of a large range of petroleum products. The NRL refinery complex comprises three refineries, consisting of two lube refineries, and a fuel refinery.

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