PRL’s profit jumps 4 times, but equity turns negative
Refinery fails to install diesel hydro-desulphurisation unit
An oil refinery. PHOTO: AFP
KARACHI:
Pakistan Refinery Limited’s (PRL) profit jumped four-fold to Rs1.06 billion in the year ended June 30, 2017 on the back of higher sales and lower finance costs, according to its profit and loss accounts on Tuesday.
The oil refinery had registered earnings of Rs283.39 million in the preceding fiscal year. Earnings per share shot up to Rs3.45 in FY17 from Rs0.93 in the previous year.
PRL posts net profit of Rs375m in Jan-Mar
PRL’s share price dropped 0.82%, or Rs0.43, to Rs52 with a volume of 382,500 shares at the Pakistan Stock Exchange (PSX). The refinery said in its statement the company had accumulated loss of Rs4.74 billion on June 30, 2017 (2016: Rs4.75 billion), resulting in net negative equity of Rs396.6 million (2016: Rs1.33 billion).
Current liabilities exceeded the company’s current assets by Rs7.36 billion (2016: Rs8.05 billion). Furthermore, the company could not meet the government’s deadline for installing a diesel hydro-desulphurisation (DHDS) unit and hence would be subjected to a downward adjustment in its high-speed diesel price.
“These conditions may cast a significant doubt on the company’s ability to continue as a going concern and the company may be unable to realise its assets and discharge its liabilities in the normal course of business,” it said.
However, despite the above challenges during the year, on account of improved gross refinery margins, the company earned after-tax profit of Rs1.06 billion for the year ended June 30, 2017.
Pakistan’s largest refinery to resume production this week
The company increased its running finance facilities from Rs8.75 billion to Rs9.75 billion to support liquidity management. It also completed a feasibility study in which various technological options were considered for upgrading the refinery including the installation of DHDS unit.
“The company believes that the current negative equity/liquidity situation will be overcome in the future,” it said.
Published in The Express Tribune, September 13th, 2017.
Pakistan Refinery Limited’s (PRL) profit jumped four-fold to Rs1.06 billion in the year ended June 30, 2017 on the back of higher sales and lower finance costs, according to its profit and loss accounts on Tuesday.
The oil refinery had registered earnings of Rs283.39 million in the preceding fiscal year. Earnings per share shot up to Rs3.45 in FY17 from Rs0.93 in the previous year.
PRL posts net profit of Rs375m in Jan-Mar
PRL’s share price dropped 0.82%, or Rs0.43, to Rs52 with a volume of 382,500 shares at the Pakistan Stock Exchange (PSX). The refinery said in its statement the company had accumulated loss of Rs4.74 billion on June 30, 2017 (2016: Rs4.75 billion), resulting in net negative equity of Rs396.6 million (2016: Rs1.33 billion).
Current liabilities exceeded the company’s current assets by Rs7.36 billion (2016: Rs8.05 billion). Furthermore, the company could not meet the government’s deadline for installing a diesel hydro-desulphurisation (DHDS) unit and hence would be subjected to a downward adjustment in its high-speed diesel price.
“These conditions may cast a significant doubt on the company’s ability to continue as a going concern and the company may be unable to realise its assets and discharge its liabilities in the normal course of business,” it said.
However, despite the above challenges during the year, on account of improved gross refinery margins, the company earned after-tax profit of Rs1.06 billion for the year ended June 30, 2017.
Pakistan’s largest refinery to resume production this week
The company increased its running finance facilities from Rs8.75 billion to Rs9.75 billion to support liquidity management. It also completed a feasibility study in which various technological options were considered for upgrading the refinery including the installation of DHDS unit.
“The company believes that the current negative equity/liquidity situation will be overcome in the future,” it said.
Published in The Express Tribune, September 13th, 2017.