Tag: Pakistan State Oil Company

  • 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.

  • PIA struggles to stay afloat as fuel shortage forces cancellation of 349 flights  

    PIA struggles to stay afloat as fuel shortage forces cancellation of 349 flights  

    Over the past two weeks, Pakistan International Airlines (PIA) has been compelled to cancel 349 flights due to a severe fuel shortage, underscoring the challenges faced by the financially struggling national carrier.

    According to a spokesperson, these flight cancellations, which began on October 14, have affected both domestic and international routes, causing significant inconvenience to passengers. 

    PIA has issued a statement confirming that daily flight rescheduling is ongoing, but without specifying the expected duration of this crisis. Flight schedules are being adjusted based on fuel availability, as mentioned in the statement. 

    This situation has arisen from an ongoing financial dispute between PIA and the Pakistan State Oil Company (PSO). PIA alleges that PSO has suspended its credit line for fuel and is now requiring daily advance payments before supplying the necessary fuel. 

    PIA has emphasised its efforts to manage its funds and has indicated that the return to regular flight schedules depends on the availability of financial resources. 

    To keep affected travellers informed, PIA has outlined its priority destinations once flight operations resume. Canada, Turkey, China, Malaysia, and Saudi Arabia are expected to be among the first countries to be reconnected. 

    However, PIA’s flights to Europe and the UK have remained suspended since 2020 following the revocation of the national carrier’s authorization by the European Union’s Aviation Safety Agency due to the pilot licence scandal.