Byco gross profit slumps 78pc

KARACHI: Byco Petroleum Pakistan Ltd (BPPL) on Tuesday said its gross profits dropped 78 percent to Rs1.9 billion for the year ended on June 30 2019 from Rs9.1 billion last year, largely on dwindling demand and rupee devaluation.

A statement said the company booked an after-tax loss of Rs 1.68 billion, or Rs 0.32 per share, for the year, down from Rs5.02 billion or Rs0.94 per share, last year; therefore, no dividend was declared for the period.

The last fiscal year was a tough period for Pakistan’s oil sector in which Byco faced a multitude of challenges, the statement said. It however added that the company’s gross turnover increased 17 percent from the previous year to Rs251 billion following an increase in oil prices and rupee devaluation.

It said with the country’s economic growth slowing to nine-year low of 3.3 percent in the previous fiscal year, the oil sector witnessed a 22 percent decline in consumption. Moreover, rupee depreciated over 30 percent against dollar and due to the absence of any foreign exchange hedging mechanism, the energy industry incurred significant foreign currency losses, the statement said.

Byco said it booked an exchange loss of Rs4.19 billion, adding the company, however, tried to minimise its exposure to foreign currency but its efforts were hampered by the restrictions on the oil industry to obtain forward cover.