Pakistan Refinery profit jumps 123% in FY24

Driven by a significant increase in revenue, Pakistan Refinery Limited (PRL), a subsidiary of the Pakistan State Oil Company Limited (PSO), witnessed a remarkable turnaround as its profit-after-tax (PAT) clocked in at Rs4.06 billion in the financial year ended on June 30, 2024.

In the financial year 2023, PRL posted a PAT of Rs1.82 billion.

According to a notice to the Pakistan Stock Exchange (PSX) on Thursday, the board of directors met on August 21 to review the company’s financial and operational performance and recommended a final cash dividend of Rs2 per share.

Chinese companies keen in expansion project, says PRL

Earnings per share (EPS) were recorded at Rs6.45 in FY24 as compared to EPS of Rs2.90 in FY23.

The refinery revenue from contracts rose to Rs305.54 billion compared to Rs261.86 billion in FY23, an increase of nearly 16.68%.

The company saw its gross profit increase by an exponential 107%, clocking in at Rs15.1 billion in FY24, compared to Rs7.3 billion in FY23.

PRL’s other income increased 9% to Rs4.43 billion in FY24, compared to Rs4.07 billion in FY23.

However, the company’s operating expenses also shot up to Rs6.76 billion in FY24, in comparison to Rs2.44 billion in the previous year.

Despite the increase, PRL’s operating profit rose to Rs10.83 billion in FY24, as compared to Rs7.45 billion last year, a massive jump of 46%.

The finance cost reduced to Rs3.8 billion from Rs4.1 billion in FY23.

The company’s profit before tax from refinery operations stood at Rs7.07 billion in FY24, as compared to Rs3.37 billion last year, an exponential increase of 110%.

PRL explains what has made its business model ‘unsustainable’

Pakistan Refinery Limited was incorporated in Pakistan as a public limited company in May 1960.

The refinery’s current capacity stands approximately at 50,000 barrels per day of crude oil into petroleum products, such as furnace oil, high-speed diesel, kerosene oil, jet fuel and motor gasoline, among others.