KARACHI: Pakistan Refinery Limited (PRL) managed to recover from steep losses with the return of relative stability in international crude oil prices, as it reported a net profit of Rs860.45 million for nine months ended March 31, 2016 against a loss of Rs2.48 billion in the same period of previous year.
In a notification to the Pakistan Stock Exchange on Friday, the refinery said it booked earnings per share (EPS) of Rs2.83 compared to loss per share of Rs11.38 in the previous year.
At around the same time in the previous financial year, the crumbling crude prices in world markets had inflicted heavy inventory losses to refineries all over the world and Pakistan was no exception.
This could be gauged from the fact that the cost of sales was higher than the sales revenue in the first nine months (July-March) of 2014-15. However, the situation reversed in the first nine months of the current financial year.
Cost of sales dropped to 96% (or Rs47.81 billion) of net sales worth Rs49.75 billion in the period under review from 102% (or Rs72.46 billion) of net sales valuing Rs70.73 billion in the corresponding period of previous year.
Apart from this, other income of the refinery surged 43% on a year-on-year basis to Rs186.81 million. However, income from associates dropped almost six-fold to Rs1.87 million from Rs10.72 million last year. Finance cost rose 29% to Rs687.53 million from Rs535.06 million.
Published in The Express Tribune, April 23rd, 2016.
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