Byco Gross Profit Up By 48% At Rs 2.9 Bn

Umer Jamshaid Published September 25, 2020 | 12:14 AM

Byco Petroleum Pakistan Limited reports gross sales of Rs 239 billion, gross profit of Rs 2.9 billion, and net loss of Rs 0.46 per share for fiscal year 2019-20

KARACHI, (UrduPoint / Pakistan Point News - 24th Sep, 2020 ):Byco Petroleum Pakistan Limited reports gross sales of Rs 239 billion, gross profit of Rs 2.9 billion, and net loss of Rs 0.46 per share for fiscal year 2019-20.

The company is operating under a tough business environment but remains focused on improving operational excellence and ramping up its facilities, said a press release here on Thursday.

According to the company's financial results declared for the year ending June 30, 2020, despite facing a 15% fall in crude oil prices, Byco was able to maintain its gross sales and suffered only 5% drop Rs 239 billion from Rs 252 billion of the previous year through implementation of prudent strategies.

The company's gross profits, however, increased by 48% to Rs 2.9 billion from Rs 1.96 billion last year due to better pricing of crude cargos. The operating expenses remained within budget. Due to the Pak Rupee's depreciation, the company booked an exchange loss of Rs 514 million.

Finance costs increased due to higher KIBOR rates. Consequently, the company's net loss came in at Rs 2.43 billion, or Rs 0.46 per share, as compared to Rs 1.68 billion, or Rs 0.32 per share, in fiscal year 2018-19.

The global energy industry in general and the oil refiners in Pakistan in particular are facing some of the most daunting challenges ever. The rapid spread of COVID-19 brought business activities to a standstill, pushed the global economy into a recession, decimated fuel demand, and reduced oil prices to historic lows.

Oil demand in Pakistan fell by 35% following the nationwide lockdown in March and April. The continued decline in HSFO consumption and prices both at home and abroad, significant exchange losses following the reduction in the value of the Pak Rupee against the US dollar, weak fuel demand, and inconsistencies in product pricing had a negative impact on the refining margins and the company's earnings.