KARACHI: Hascol Petroleum Limited (PSX: HASCOL) posted a 37.1% year-on-year (YoY) reduction in losses for the calendar year ending December 31, 2024, with after-tax losses amounting to Rs11.63 billion, compared to Rs18.48 billion in the same period last year (SPLY). Loss per share (LPS) decreased to Rs11.64 from Rs18.49.
The improvement came despite an 11.6% YoY decline in net sales, which dropped to Rs145.52 billion from Rs164.63 billion in 2023. The decline in sales was partially offset by a proportional reduction in cost of sales, which decreased by 11% to Rs142.39 billion. However, gross profit still fell sharply by nearly 30% to Rs3.61 billion.
A key boost to the company’s financials came from a 17-fold surge in other income, which rose to Rs3.26 billion from just Rs176 million last year—primarily driven by non-core activities. Additionally, the company recorded an exchange gain of Rs208 million in 2024, reversing a heavy exchange loss of Rs5.84 billion in 2023, offering some relief to the bottom line.
On the cost side, Hascol saw marginal declines in distribution and marketing expenses (down 2.4% YoY) and administrative expenses (down 4.0%). However, other expenses more than doubled to Rs2.61 billion, up 118% from the previous year.
Finance costs remained elevated at Rs10.54 billion, though slightly down by 4.3% YoY. The company reported an operating loss of Rs656 million, which improved from Rs975 million last year—a 32.7% reduction. Loss before tax stood at Rs11.63 billion, down 37.05% from Rs18.47 billion last year.
No income tax was recorded for the year, consistent with the prior year, reflecting continued losses and deferred tax positions.
Hascol Petroleum Limited is one of Pakistan’s leading oil marketing companies, engaged in the procurement, storage, and distribution of petroleum products. The company operates a nationwide network of retail fuel stations and has historically focused on expanding its infrastructure and supply capabilities. However, Hascol has faced financial distress in recent years, stemming from mounting debts, exchange rate volatility, and legacy issues related to receivables and governance. It is currently in the process of implementing a restructuring plan aimed at achieving long-term financial stability.
