Cynergico swings to losses, presses ahead with refinery investment

Cnergyico PK Ltd (PSX: CNERGY) – still better known to many investors by its former name, Byco – has swung to a loss for the financial year ended 2025, even as revenues climbed and the company pressed ahead with a billion-dollar refinery upgrade and a sweeping break-up into separate businesses. Management is also pivoting its crude slate toward lighter imports from the United States and West Africa – away from Pakistan’s traditional sources in Saudi Arabia and the UAE – to limit furnace oil yields, while exporting most of the furnace oil it still produces to offset domestic levies.

On a standalone basis, net sales rose 23% year-on-year to Rs297 billion in FY25 from Rs241 billion in FY24. But the revenue uplift did not translate into earnings: gross profit fell 60% to Rs5.0 billion, squeezing the gross margin to 2%, and profit after tax swung from Rs1.0 billion in FY24 to a loss of Rs2.9 billion in FY25. EBITDA dropped 45% to Rs9.5 billion. The company’s fourth quarter illustrated that pressure starkly: sales dipped 9% year-on-year and gross profit was essentially flat, producing a quarterly loss.