Karachi February 25 2022: During the first six months July to December 2021, the petroleum segment of Hi-Tech Lubricant recorded net sales revenue of PKR 2,744 million as compared to PKR 856 million which is higher by 220% as compared to same period last year, mainly on account of increase in sales volume and average selling prices of petroleum products.
Efficient inventory management, increase in average margins and inventory gains due to increase in the prices of petroleum products led to impressive 218% increase in gross profit translating it into net profit of PKR 8.2 million which is higher by 122% as compared to same period last year.
Oil and Gas Regulatory Authority (OGRA) has enhanced the limit of HTL Fuel Stations from twenty-six to fifty-two in the Province of Punjab on the basis of successful expansion of Sahiwal Oil Storage Facility. Furthermore, the Company has successfully completed its second Oil Storage Facility located at Nowshera, Khyber Pakhtunkhwa Province and received satisfactory completion acknowledgment from OGRA. It will allow the Company to operate a further thirty-five HTL Fuel Stations in Khyber Pakhtunkhwa Province
During the period under review, on consolidated basis, attained profit after tax of PKR 396.394 million, up by 30 percent as compared to after tax of PKR 304.846 million during the corresponding period. The consolidated earnings per share increased to PKR 2.85 as compared to earnings per share of PKR 2.19 during the corresponding period.
During the period under review, net revenue of lubricants segment has reached PKR 4,322 million, up by 14% as compared to PKR 3,762 million during the corresponding period. Gross profit and profit from operations have increased by PKR 375 million and PKR 150 million respectively in comparison to the corresponding period.
During the first six months, on unconsolidated basis, Hi Tech Lubricant attained profit after tax of PKR 619.308 million, up by 254 percent as compared to after tax of PKR 174.863 million during the corresponding period.
The unconsolidated earnings per share increased to PKR 4.45 as compared to earnings per share of PKR 1.26 during the corresponding period. Increase in revenue and earnings is attributed to release of demand hitherto suppressed by Covid and economic conditions. Furthermore, first dividend of PKR 260 million has been received from Hi-Tech Blending (Private) Limited – wholly owned subsidiary which is itself an achievement.
At 31 December 2021, the un-utilized proceeds of PKR 478.842 million of the initial public offer that have been kept by the Company in the form of bank balances, term deposit receipts and money market mutual funds. These can only be utilized for the purposes of expansions related to OMC project (petroleum segment) of the Company.
Hi-Tech Lubricants Limited (“the Company”) was incorporated under the repealed Companies Ordinance, 1984 (Now Companies Act, 2017) and listed on Pakistan Stock Exchange Limited. The registered office of the Company is situated at 1-A, Danepur Road, GOR-1, Lahore. The principal activity of the Company is to procure and distribute lubricants and petroleum products. During the year ended 30 June 2017, Oil and Gas Regulatory Authority (OGRA) has granted license to the Company to establish an Oil Marketing Company (OMC), subject to some conditions. On 31 May 2019, OGRA has granted permission to the Company to operate new storage facility at Sahiwal and marketing of petroleum products in province of Punjab. On 20 January 2020, the Company has started marketing and sale of petroleum products. On 21 February 2020, OGRA has granted permission to the Company to apply for No Objection Certificates (NOCs) from concerned departments to setup petrol pumps in Khyber Pakhtunkhwa Province. On 9 August 2021, OGRA has acknowledged the satisfactory completion of oil storage facility at Nowshera, Khyber Pakhtunkhwa Province. On 13 January 2022, subsequent to the reporting period, OGRA has further extended / renewed the Provisional License for setting up of an OMC upto 31 December 2023.
