Pakistan Refinery turns into profit

Earns Rs122m against loss of Rs648m last year.

KARACHI: Pakistan Refinery Limited managed to turn around and announced a profit in the quarter ended September 2016 on the back of lower finance cost and increased other income, according to a bourse filing on Monday.

The refinery earned Rs122.21 million in the Jul-Sept quarter compared to a loss of Rs648.13 million in the same quarter last year. Earnings per share stood at Rs0.39 against loss per share of Rs2.28 last year.

However, its share price fell 1.12%, or Rs0.50, and closed at Rs43.78 with a volume of 571,000 shares at the Pakistan Stock Exchange.

The decline in the share price may partly be attributed to the depressed sentiment in the overall market and partly due to a fall in oil prices in world markets. The company reported a decline of 39% in its finance cost which stood at Rs163.94 million compared to Rs267.51 million in the same quarter last year.

Other income rose 60% to Rs52.26 million in Jul-Sept 2016 from Rs32.72 million in the corresponding period last year.

The company’s earnings from the associated firm increased 61% to Rs1.36 million as opposed to Rs0.85 million in the same quarter last year.

Net sales, however, fell 10% to Rs17.23 billion from Rs19.22 billion in the previous year.

Large parts of the revenue were spent on sales. Cost of sales stood at Rs19.50 billion, which was 101.43% of net sales in 1Q2015.

Published in The Express Tribune, October 25^th, 2016.

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