Analyst cites lower gross refining margins for the loss. PHOTO: FILE
The company had posted a profit of Rs695 million in the same period of previous fiscal year, according to a notice sent to the PSX.
Loss per share (LPS) of the company came in at Rs11.32 for Jul-Mar FY19 against earnings per share (EPS) of Rs2.26 in the same period of last year.
According to JS Research analyst Arsalan Ahmed, the reason for the loss was lower gross refining margins.
Gross refining margins show the difference between total value of petroleum products released by an oil refinery (output) and the price of raw material (input), which is crude oil.
“Motor gasoline was the main reason behind the loss because motor gasoline margins fell to their lowest in over seven years,” the analyst pointed out. “Secondly, furnace oil sales remained low during the (Jan-Mar) quarter due to discouraging policies concerning furnace oil.”
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Another reason behind the shift was the rupee depreciation against the US dollar, he added. The company recorded revenue of Rs81.4 billion during the nine-month period, 26% higher than Rs64.6 billion in the same period of previous year. On the other hand, cost of sales rose 31% to Rs83.3 billion against Rs63.6 billion.
Gross loss of the company was recorded at Rs1.8 billion as opposed to gross profit of Rs990 million in the same period of previous year.
Other income nosedived 87% to Rs141 million in Jul-Mar FY19 against Rs1 billion in the corresponding period of FY18.
The company posted a loss of Rs474 million in the quarter ended March 31, 2019 against profit of Rs549 million in the same quarter of 2018.
Published in The Express Tribune, April 30th, 2019.
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