National Refinery reports reduced loss as land revaluation boosts investor sentiment

National Refinery Limited (NRL) reported a loss after tax of Rs14.87 billion for the fiscal year ending June 30, 2025, a 5.85% improvement compared to the Rs15.79 billion loss recorded in the same period last year. This translates to a loss per share (LPS) of Rs185.91, down from Rs197.46 in FY24.

Despite the loss, the company's revenue from contracts with customers rose by 2.81% year-on-year (YoY) to Rs408.07 billion. However, net revenue decreased slightly by 0.38% to Rs307.66 billion, impacted by trade discounts, taxes, duties, levies, and price differentials.

A key factor contributing to the improved performance was the revaluation of surplus leasehold land, which resulted in a 46 billion rupees increase, positively impacting investor sentiment. Shares of NRL surged by 10%, reaching the highest limit since June 2, 2025.

Operating costs fell marginally, with the gross loss decreasing by 19.74%. Administrative expenses were reduced by 5.33%, while distribution costs rose by 37.24%. Other income saw a significant jump of 61.82%, contributing to the reduction in overall losses.

Finance costs, however, rose by 10.97% to Rs10.33 billion, contributing to a loss before taxation of Rs18.44 billion. Despite the challenges, NRL’s proactive approach to land revaluation and cost management has helped it improve its financial outlook.