Hascol's profit soars 84% to Rs372.33m

Net revenue rises 71% to Rs34.89b due to higher sales

KARACHI: Hascol Petroleum Limited’s consolidated profit surged 84% to Rs372.33 million in the quarter ended March 31 mainly due to impressive sales and reduced sales tax, according to a bourse filing on Friday.

The oil marketing company had registered a profit of Rs202.2 million in the same quarter last year.

Earnings per share rose to Rs3.09 in the Jan-Mar quarter from Rs1.68 in the corresponding quarter of previous year.

Hascol’s share price increased 2.59%, or Rs8.86, and closed at Rs350.71 with trading in 824,800 shares at the Pakistan Stock Exchange (PSX).

Net revenue of the company soared 71% to Rs34.89 billion from Rs20.32 billion due to increased sales, reduced rate of sales tax and improved other revenue.

Taurus Securities’ analyst M Daniyal Kanani said in post-result comments that net sales jumped on the back of increased volumetric sales of petrol (MS) and diesel (HSD) along with 44% and 13% rise in ex-refinery prices, respectively.

“Introduction of better-quality petrol (RON-95) also fueled its sales, though marginally,” he said.

“Gross margins expanded 34 basis points to 4.09% over the previous year as margins on retail fuels shot up coupled with realisation of nominal inventory gains in the quarter as opposed to losses in the same period of last year.”

According to the analyst, Hascol is actively planning to enter the LNG/LPG marketing business along with development of retail outlets and storage facilities at a rapid pace.

Sales of the company rose 50% to Rs42.80 billion from Rs28.49 billion. The rate of sales tax was reduced to 18.67% from 28.68% in the corresponding period of previous year.

Other revenue improved to Rs86.11 million from Rs31.56 million.

Published in The Express Tribune, April 29^th, 2017.

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