KARACHI: Pakistan Refinery Limited (PRL) has managed to turn things around in the year ended June 30 on the back of issuance of right shares, reduced cost of sales and increased other income, according to a bourse filing Tuesday.
The company posted a profit of Rs283.39 million in the year under review against a loss of Rs1.18 billion in the preceding year. Accordingly, earnings per share amounted to Rs0.93 as compared to a loss per share at Rs5.42 last year, the company said in a statement to Pakistan Stock Exchange.
Board of directors has recommended a final cash dividend at Rs0.31 per share.
The result failed to motivate equity investors, as the company share price fell Rs2.87 and closed at Rs43.83 with a turnover of 4.46 million shares at the exchange.
The issuance of right shares of Rs2.59 billion during the year under review and realisation of additional revenues from its Isomerisation project commissioned in June 2015 helped the company reap profits this year.
Otherwise, as on June 30, 2016, the company has accumulated losses of Rs4.75 billion (June 30, 2015, Rs1.51 billion) and its current liabilities exceed its current assets by Rs8.05 billion (June 30, 2015: Rs8.77 billion), the company said in the statement.
The cost of sales declined 3.82% to 96.92% of net sales at Rs64.73 billion in the year. Last year, it was standing at 100.74% of the sales at Rs91.17 billion.
The other income surged to Rs635.35 million from Rs184.91 million last year. The share of income from associated firms decreased to Rs5.32 million from Rs17.97 million in the previous year.
Finance cost rose to Rs908.78 million from Rs706.69 million.
Published in The Express Tribune, August 24th, 2016.