Byco Petroleum Pakistan Limited (BPPL) on Thursday posted a net loss of Rs1.472 billion for the July-December 2012 period, that is 40.78% less than what the holding company of oil refinery and the marketing companies incurred in the same period of previous year.
The results, which came after a delay of couple of months, speak of the financial woes of the Byco, which has aims of becoming country’s largest petrochemical business.
Revenue in the second half of 2012 surged to Rs32 billion, showing a surge of 251% over the corresponding period of 2011, suggesting that the company was able to operate its troubled 35,000 barrels per day (bpd) oil refinery.
BPPL runs the 35,000 bpd refinery and a petroleum marketing company and is part of Byco Industries Incorporated, which has also invested in a large 120,000 bpd refinery. The financial results reflect business of only BPPL.
The company recorded a gross profit of Rs319 million against a loss of Rs1 billion comparable period of previous year, suggesting that refining and marketing margins improved along with better management of crude oil imports.
It realised Rs453 million as other income, most of which is interest claim on payments receivable from other petroleum firms.
Financial charges ate up Rs1.34 billion as BPPL continued to clear the backlog of loans accumulated in the previous years as result of fluctuation in international oil price and depreciation of rupee.
Accumulated losses have wiped off company’s equity and it has negotiated restructuring of its existing debt with lenders.
Published in The Express Tribune, July 19th, 2013.
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Correction: In an earlier version of this article, it was incorrectly mentioned that the BPPL posted a net loss of Rs1.472 billion for the July-December 2013 period. The error is regretted.