Tag: financial loss

  • Profit plunge: Pakistan Refinery Limited records Rs1.24 billion loss

    Profit plunge: Pakistan Refinery Limited records Rs1.24 billion loss

    Pakistan Refinery Limited (PRL), a subsidiary of Pakistan State Oil Company Limited (PSO), faced a significant loss of Rs1.24 billion in the third quarter ending March 31, 2024, primarily due to reduced revenue and escalating costs.

    This marks a stark contrast to the same quarter in the previous fiscal year, when PRL posted a profit of Rs1.77 billion.

    The financial setback was announced through a notice to the Pakistan Stock Exchange (PSX) on Wednesday following a meeting of PRL’s board of directors on April 23. In light of the loss, the board recommended no dividend distribution.

    According to the report, the loss per share (LPS) for the quarter was Rs1.97, a notable decline from earnings per share (EPS) of Rs2.81 in the same period last year (SPLY).

    This financial downturn was driven by a 17 per cent drop in revenue from contracts, which fell to Rs49.45 billion in 3QFY24 from Rs59.55 billion in SPLY. As a result, PRL recorded a gross loss of Rs559.1 million, a significant shift from a gross profit of Rs4.46 billion in SPLY.

    The company’s ‘other income’ rose dramatically, up over 95 per cent to Rs1.12 billion in 3QFY24 compared to Rs574.32 million in SPLY.

    Despite this increase in other income, the company’s operating expenses soared by more than 240 per cent, reaching Rs1.69 billion in the third quarter, compared to Rs495.52 million in SPLY.

    Consequently, PRL reported an operating loss of Rs1.13 billion, a sharp reversal from an operating profit of Rs4.54 billion in the same period last year.

    The loss before tax (PBT) from refinery operations in 3QFY24 was Rs2.11 billion, a considerable drop from a profit of Rs2.65 billion in SPLY.

    However, despite the quarterly loss, PRL’s performance over the first nine months of the fiscal year remains positive, with a profit of Rs5.27 billion—more than double the Rs2.53 billion earned in the same period last year.

    Pakistan Refinery Limited was established in 1960 and has a current capacity of approximately 50,000 barrels of crude oil per day.

    It produces various petroleum products, including furnace oil, high-speed diesel, kerosene oil, jet fuel, and motor gasoline.

    Despite the recent downturn, the company’s operational capacity and product range remain robust.

  • PM Kakar pushes for speedy privatisation of financially troubled state-owned enterprises

    Caretaker Prime Minister (PM) Anwaar-ul-Haq Kakar, in a meeting held on Monday, directed the relevant authorities to expedite the privatisation process of state-owned enterprises (SOEs) that are experiencing financial losses.

    Stressing the importance of this privatisation effort, the Prime Minister emphasised its role in safeguarding the national treasury from further deficits.

    During this meeting, Minister for Privatisation Fawad Hasan Fawad provided a detailed update on the progress made in the privatisation of these enterprises.

    PM Kakar also commended the Special Investment Facilitation Council (SIFC) for its commendable contributions to this endeavor. 

    It’s worth noting that the caretaker Premier had previously issued similar directives to accelerate the privatisation process of Pakistan International Airlines (PIA), a loss-making entity.

    This development comes in response to reports suggesting that unless emergency funding is secured, PIA’s flight operations could face suspension.

    A senior PIA director revealed that the operational fleet had been reduced from 23 to 16 aircraft, resulting in the cancellation of numerous flights.

  • Commerce minister warns of financial loss over proposed early market closure 

    Commerce minister warns of financial loss over proposed early market closure 

    Caretaker Minister for Commerce, Industries, and Production, Dr Gohar Ejaz, has voiced his opposition to the early market closure proposed as part of the energy conservation plan, expressing concerns over the significant financial losses the government could incur as a result.  

    According to ARY News, Dr Ejaz said that Pakistan currently has a surplus of electricity, making the decision to close markets prematurely economically unfavorable. 

    He revealed that recommendations were sought from all chambers of commerce across the country within a 30-day period. Additionally, Dr Ejaz announced an upcoming anti-gas theft initiative following the anti-power theft operation. He urged traders to be flexible, considering the limited gas resources in the country. 

    Furthermore, he revealed plans to invite 100 international brands to a conference in Pakistan, granting them the status of state guests. Dr Ejaz also mentioned the current exchange rate of the US dollar, which stands at Rs260. 

    To encourage the purchase of electricity from Thar, he directed Sindh and Punjab to do so, promising tax exemptions if they comply. This move aims to make electricity tariffs in these regions more competitive. 

    The caretaker minister stressed the need to boost exports, pointing out that Pakistan’s foreign direct investment is contingent on increased exports. He called for cooperation from business leaders to resolve various issues.  

    Dr Ejaz expressed his commitment to serving the country and previously outlined plans to support industry stakeholders in boosting exports and establishing business parks in major cities to stimulate economic growth. 

  • IG Punjab orders aggressive action against electricity thieves costing nation Rs600 billion annually 

    IG Punjab orders aggressive action against electricity thieves costing nation Rs600 billion annually 

    Inspector-General Police Punjab, Dr Usman Anwar, has directed top police officials in Punjab, including Regional Police Officers (RPOs), City Police Officers (CPOs), and District Police Officers (DPOs), to intensify efforts against anti-national and anti-social elements involved in electricity theft, which is causing a staggering annual loss of Rs600 billion to the national treasury. 

    In a special video message, Dr Usman Anwar emphasised that Punjab Police’s crackdown on electricity thieves has gained momentum, with over 1,000 cases registered daily, spanning the entire province, including Lahore. This financial loss surpasses the cumulative losses from 15 years of various crimes, such as dacoity and robbery, across Punjab. 

    According to Business Recorder, Dr Usman Anwar clarified that the scale of this theft far outweighs other criminal activities and assured that, following the directives of the Prime Minister and Chief Minister of Punjab, there will be no leniency for those involved in electricity theft. Offenders, regardless of their methods, will face legal consequences. 

    He expressed concern that innocent citizens must bear the financial burden of others’ theft, emphasising that no one will be allowed to rob citizens of their hard-earned money. Dr Usman Anwar urged citizens to cooperate with law enforcement, district administrations, and relevant institutions by reporting electricity theft in their areas to accelerate actions against these elements harming the nation’s financial interests. 

  • Pak Suzuki’s auto and motorcycle plant to stay closed till July 19

    Pak Suzuki’s auto and motorcycle plant to stay closed till July 19

    Pak Suzuki Motor Company Ltd (PSMCL), Pakistan’s leading car manufacturer in terms of production and sales, has announced an extension of its plant shutdown due to an ongoing shortage of inventory. The decision was conveyed to the Pakistan Stock Exchange (PSX) through an official notice on Friday.

    In the notice, the automaker explained that the management had decided to prolong the closure of its motorcycle and automobile plant until July 19, 2023, citing the persistent inventory shortage. Previously, PSMCL had already suspended operations until July 15, 2023, and had also experienced a shutdown from May 2 to May 9 due to a scarcity of raw materials.

    It is important to note that the auto industry in Pakistan is facing multiple challenges, leading several automakers to announce temporary or partial closures in recent months, citing various reasons.

    In April, Pak Suzuki reported its highest quarterly loss to date, amounting to Rs12.9 billion in the first quarter of 2023. This decline in profitability was attributed to a decrease in sales and substantial finance costs. In comparison, the company had incurred a loss of Rs460.227 million during the same period the previous year.

    Earlier, Pak Suzuki had appealed to Prime Minister Shehbaz Sharif not to introduce additional duties and taxes in the upcoming 2023-24 budget. The company emphasised the economic uncertainties it was facing and the resulting struggles and losses.