PRL hits production records and sees profit surge in FY 2023-24

KARACHI: Pakistan Refinery Limited (PRL) achieved record-setting production figures for high-speed diesel (HSD) and motor spirit (MS) during the fiscal year 2023-24.

HSD production soared to 660,180 metric tonnes, even with a planned 38-day turnaround, achieving an average daily production of 2,013 metric tonnes -- an all-time high.The production of MS-92 also reached unprecedented levels, totalling 265,710 metric tonnes for the year with a daily output rate of 810 metric tonnes. PRL produced 16,005 metric tonnes of MS-95, including 1,940 metric tonnes of Euro V-compliant fuel, as stated in a company announcement on Thursday.

The year has marked a turning point for PRL, highlighted by significant profitability growth, record production achievements, and strategic advancements positioning the company for ongoing success. Central to these accomplishments is the Refinery Expansion and Upgrade Project (REUP), a key element of PRL’s long-term plan to boost capacity and deliver cleaner, high-quality fuels.

The company’s dedication to operational excellence and its proactive approach to market trends have driven these successes and reinforced PRL’s position as a leader in the energy sector.

The fiscal year 2023-24 has been notably successful for PRL, characterized by a marked increase in profitability, reflecting the company’s strategic efforts, effective crude selection, and enhanced inventory management. PRL reported a profit after taxation of Rs4.06 billion, up from Rs1.82 billion the previous year, demonstrating the company’s robust operational strategies and its dedication to providing value to stakeholders.

This accomplishment is particularly impressive given the substantial REUP FEED expenses of Rs7.18 billion incurred during the year. The company’s earnings per share also saw a significant increase, rising to Rs6.45 from Rs2.9 in the previous year.

This rise in earnings per share highlights PRL’s commitment to maximizing shareholder value, further underscored by the board of directors’ recommendation of a final cash dividend of Rs2 per share for the fiscal year ending June 30, 2024.

PRL’s strategic approach to crude oil procurement has notably enhanced its financial performance. The company successfully procured and processed Russian crude, which proved commercially, logistically, and technically viable, opening up additional sourcing opportunities. PRL is distinguished as the only refinery to have completed the Upgrade and Escrow Account Agreements under the Refining Policy within the required timeline, with Rs4.2 billion already deposited in the escrow account by June 2024.PRL is set to continue its growth trajectory with the anticipated completion of the REUP and other strategic initiatives in the future.