KARACHI: Pakistan Refinery Limited (PRL) has reported a net loss of Rs4.66 billion for the year ending June 30, 2025, compared to a profit of Rs4.06 billion in the previous year, marking a significant decline in profitability despite a slight increase in revenues, according to the company’s audited financial results.
PRL’s revenue from contracts with customers rose by 1.6% to Rs310.35 billion, up from Rs305.54 billion in FY2024. However, the company’s cost of sales grew by 6.2%, rising to Rs308.49 billion from Rs290.45 billion, leading to a sharp decline in profitability. Gross profit fell by 87.7%, dropping to Rs1.86 billion from Rs15.09 billion in the prior year.
The company faced operational challenges, with selling expenses rising by 18.6% to Rs792.7 million and administrative expenses increasing by 10.5% to Rs1.39 billion. On a positive note, other operating expenses decreased sharply by 62.3% to Rs2.55 billion, and other income dropped 39.1% to Rs2.70 billion.
As a result, PRL posted an operating loss of Rs176.6 million, compared to an operating profit of Rs10.83 billion in FY2024. Finance costs remained largely stable at Rs3.79 billion, but the share of income from associates fell drastically by 96%, down to just Rs0.79 million from Rs19.5 million in the previous year.
PRL recorded a loss before taxation of Rs3.96 billion, a stark contrast to the Rs7.07 billion profit in FY2024. The final tax and minimum tax surged by 413.3% to Rs1.83 billion, further impacting the company’s bottom line. After accounting for taxation, the company reported a net loss of Rs4.66 billion.
Despite the loss, PRL recognized a revaluation surplus of Rs2.90 billion on property, plant, and equipment, which partly offset the decline in profits. The total comprehensive loss for the year stood at Rs1.71 billion, compared with a comprehensive profit of Rs4.21 billion in FY2024.
Earnings per share (EPS) reflected the downturn, with a basic and diluted loss of Rs7.4 per share, compared to earnings of Rs6.45 per share in the previous year, marking a deterioration of 14.7%.
PRL’s outlook is affected by rising operational costs and declining margins, with the company focusing on managing its assets more effectively and addressing challenges in its operational framework.
