KARACHI: Pakistan Refinery Limited (PRL), a subsidiary of Pakistan State Oil Company Limited (PSO), has reported substantial financial losses amounting to Rs2.35 billion for the quarter ending September 30, 2024. This marks a stark contrast to the previous year’s profit-after-tax of Rs4.48 billion for the same period.
In a notice to the Pakistan Stock Exchange (PSX), the company disclosed a loss per share (LPS) of Rs3.73 for the first quarter of FY25, compared to earnings per share (EPS) of Rs7.11 during the same quarter last year.
The significant losses can be attributed to a decline in revenue and soaring operating costs. PRL’s revenue from contracts fell to Rs82.1 billion in Q1 FY25, down from Rs93.4 billion the previous year, a drop of over 12%. Consequently, the company’s gross profit plummeted by over 99%, reaching a mere Rs56.3 million, compared to Rs8.9 billion in Q1 FY24.
Operating expenses escalated dramatically, exceeding Rs1.8 billion in Q1 FY25, more than double the Rs890.9 million reported in the same period last year. Additionally, PRL’s other income fell to Rs608.2 million, down from Rs752.3 million in the previous year, further contributing to the financial strain.
As a result of these challenges, PRL reported an operating loss of Rs1.7 billion for the quarter, a stark contrast to the operating profit of Rs8.4 billion reported last year. The company’s loss before tax from refinery operations also deepened to Rs2.5 billion, compared to a profit before tax of Rs7.5 billion in the prior year.
Incorporated in May 1960, Pakistan Refinery Limited currently has a 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 convenes to assess the company’s financial performance, industry analysts are closely watching how PRL will navigate these turbulent economic conditions and rising operational costs in the coming months.
