KarachiPakistan Refinery Limited (PRL), a subsidiary of Pakistan State Oil Limited (PSO), reported a significant financial loss of INR 2.35 billion for the quarter ended September 30, 2024. This is in stark contrast to the previous year’s profits. – After tax of Rs 4.48 billion for the same period.
In a filing to the Pakistan Stock Exchange (PSX), the company disclosed a loss per share (LPS) of Rs 3.73 for the first quarter of fiscal 2025, compared to earnings per share (EPS) of Rs 7.11 during the same last quarter. year.
The large losses can be attributed to lower revenues and higher operating costs. PRL’s revenue from contracts fell to Rs82.1 billion in Q1FY25, down from Rs93.4 billion a year earlier, a decline of more than 12%. As a result, the company’s gross profit fell by more than 99%, to just Rs 56.3 million, compared to Rs 8.9 billion in Q1FY24.
Operating expenses rose significantly, crossing Rs 1.8 billion in Q1FY25, more than double the Rs 890.9 million reported in the same period last year. In addition, PRL’s other income fell to Rs 608.2 million, down from Rs 752.3 million in the previous year, further contributing to the financial stress.
As a result of these challenges, PRL reported an operating loss of Rs 1.7 billion for the quarter, a stark contrast to the operating profit of Rs 8.4 billion reported last year. The company’s pre-tax losses from refining operations also deepened to 2.5 billion rupees, compared to pre-tax profits of 7.5 billion rupees in the previous year.
Established in May 1960, Pakistan Refinery Company Limited currently has the capacity to process approximately 50,000 barrels of crude oil per day into various petroleum products, including furnace oil, high-speed diesel, kerosene, jet fuel and motor gasoline.
As the Board of Directors meets to evaluate the company’s financial performance, industry analysts are closely watching how PRL will handle these turbulent economic conditions and rising operating costs in the coming months.