Pak Refinery half-year profit falls 79 percent

KARACHI: Pakistan Refinery Limited (PRL) net profit fell 79 percent to Rs145.26 million for the half-year ended December 31, 2017, translating into earnings per share (EPS) of Rs0.47, the company said on Wednesday.

PRL’s net profit was Rs690.21 million with an EPS of Rs2.24 in the same half ended December 31, 2016, PRL in a statement to the Pakistan Stock Exchange (PSX) said. The company did not announce any payout along with the corporate announcement.

The sales revenues during the half-year stood at Rs29.55 billion as against sales of Rs34.343 billion in the corresponding period of the previous year.

The bourse filing noted that by December 31, 2017 the company has accumulated losses of Rs4.6 billion resulting in negative equity of Rs0.25 billion and its current liabilities exceed its current assets by Rs7.96 billion.

Further, under the policy framework for up-gradation and expansion of refinery projects issued by the Ministry of Energy in March 2013, refineries were required to install Diesel Hydro Desilphurization Unit (DHDS) by June 30, 2017 to produce Euro-II compliant high speed diesel (HSD).

In case of non-compliance, the ex-refinery price of HSD based of import parity price formula would be downward adjusted due to higher sulphur content.

The refinery did not meet the aforementioned deadline of setting up of DHDS unit and therefore, it is subject to downward adjustments in HSD pricing until the setting up of DHDS unit.

These conditions could cast a significant doubt on the company's ability to continue as a going concern and the refinery might be unable to realise its assets and discharge its liabilities in the normal course of business.