Hascol Petroleum’s profit up 10% to Rs1.32 billion

EPS stands at Rs10.69 for 2017

KARACHI: Hascol Petroleum Limited has reported a 10% increase in its consolidated profit, which amounted to Rs1.32 billion for the year ended December 31, 2017, mainly due to significant surge in sales, according to a notice sent to the Pakistan Stock Exchange (PSX) on Tuesday.

The firm booked a profit of Rs1.20 billion in the preceding year.

Earnings per share rose to Rs10.69 in the year under review, compared to Rs9.31 in the previous year.

Board of directors recommended a final cash dividend of Rs3.50 per share. This will be in addition to the cash dividend of Rs3.50 per share already paid to shareholders during the year 2017.

Hascol’s share price dropped 0.71%, or Rs1.90, to close at Rs264.10 with 73,200 shares changing hands at the PSX.

The net revenue (sales) surged massive 75% to Rs174.24 billion from Rs99.72 billion.

The company’s consolidated profit would have been higher if it had not booked a notable currency exchange loss of Rs796 million in the year compared to an exchange profit of Rs6 million, according to its profit and loss accounts available with the PSX.

Analysts linked exchange losses with the 5% rupee’s plunge in December and foresaw additional exchange loss in next quarters of 2018 due to the second round of devaluation of around 4.4% in March 2018.

Besides, the government charged tax on profit at the rate of 48.63% (Rs1.25 billion) which is 10.16 percentage points higher than 38.47% (Rs753 million) in the previous year.

On the flip side, the finance cost increased to Rs583 million from Rs442 million. Other income (which includes rent income, storage and handling income and profit on bank deposit) rose to Rs417.5 million from Rs203 million.

Published in The Express Tribune, April 4^th, 2018.

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