Hascol’s three-month profit dips to Rs399 million

Board recommends interim cash dividend of Rs3.50 per share

KARACHI: Hascol Petroleum Limited, an oil marketing firm, reported a consolidated profit of Rs399.09 million for the three-month period ended June 30, according to a bourse filing on Wednesday.

The profit is slightly (2.61%) lower than Rs409.81 million earned in the same quarter of the previous year, as the firm booked high cost of sales.

Earnings per share (EPS) declined to Rs3.35 from Rs3.40 in the corresponding period.

The board of directors has recommended an interim cash dividend of Rs3.50 per share. Hascol’s share price inched up 0.16%, or Rs0.51, to Rs308.91 with a volume of 7,700 shares at Pakistan Stock Exchange (PSX).

The net sales of the firm surged 86% to Rs42.72 billion from Rs22.97 billion.

The exponential growth in sales is realised “owing to 64%, 68% and 10% increase in sales of motor gasoline, high speed diesel and furnace oil respectively; 47% rise in furnace oil prices and 15% and 14% increase in motor gasoline and high speed diesel average price during the quarter,” IGI Finance Securities said in a post-result comment to its clients.

The increase in sales revenue failed to translate in to consolidated profit due to 91% surge in cost of products sold at Rs41.22 billion from Rs21.60 billion.

Selling and distribution expenses increased to Rs627.69 million from Rs414.03 million “due to opening of new pumps,” Topline Securities said.

The finance cost rose to Rs148.48 million from Rs108.17 million in the same quarter of last year.

Cumulatively, in the first half (January-June 2017) of the year, the profit increased 26% to Rs771.42 million (EPS of Rs6.45) from Rs612.02 million (EPS Rs5.07).

Published in The Express Tribune, August 31^st, 2017.

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