Byco Petroleum reports loss of Rs217 million

Growth of 60% in net sales fails to translate into profit

Our Correspondent February 26, 2019

KARACHI: Byco Petroleum Pakistan Limited has again started facing trouble as it posted a consolidated loss of Rs216.75 million in the half year ended December 31, 2018 due to a surge in the cost of doing business, according to a bourse filing on Monday.

The petroleum company had reported a profit of Rs1.89 billion in the same half of last year, according to a notification sent to the Pakistan Stock Exchange (PSX).

Byco reported loss per share (LPS) of Rs0.04 in Jul-Dec 2018 compared to earnings per share (EPS) of Rs0.35 in the corresponding period of previous year.

Its share price dropped 1.4%, or Rs0.13, and closed at Rs9.16 with trading in 350,500 shares at the PSX.

The company saw a massive 60% growth in net sales, which reached Rs100.1 billion in Jul-Dec 2018 compared to Rs62.63 billion in the same period of previous year. The growth in sales, however, failed to translate into net profit for the company because of a notable increase in cost of sales, administrative expenses, selling and distribution expenses, and finance cost. Cost of sales surged 5.83 percentage points to 98.92% (Rs99.02 billion) of total sales compared to 93.09% (Rs58.30 billion).

Finance costs increased 14% to Rs1.52 billion compared to Rs1.33 billion last year.

Administrative expenses rose to Rs430.53 million compared to Rs403.88 million earlier, while selling and distribution expenses swelled to Rs227.66 million compared to Rs169.77 million last year.

On the flip side, other income increased 83% to Rs609.75 million in Jul-Dec 2018 compared to Rs334 million in the corresponding period of last year.

Alone in the second quarter ended December 31, 2018, the company reported a consolidated loss of Rs457.74 million (LPS Rs0.09) compared to a consolidated profit of Rs873.58 million (EPS Rs0.16) in the same quarter of previous year.

Published in The Express Tribune, February 26th, 2019.

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