Karachi December 5 2023: Hascol Petroleum Limited (HASCOL) experienced a 31 percent growth in petroleum sales in the initial five months of the current fiscal year, spanning from July to June, as reported by OCAC data.
During the first five months of fiscal year 2024, Hascol achieved sales of 176 thousand tons of petroleum products, a notable increase compared to the 135 thousand tons sold in the corresponding period of the previous year. Motor Spirit sales saw a 30 percent surge, while High-Speed Diesel (HSD) sales exhibited a substantial 33 percent growth during this timeframe. In November, the company’s overall sales expanded by 33 percent, driven by a twofold increase in HSD sales.
Overall, country petroleum sales dip 16 percent in five months and 11 percent year on year in the month of November 2023.
Hascol recorded net sales revenue of PKR 124,219 million in first nine months of this calendar year as compared to PKR 46,770 million earned during same period last year. Net sales revenue increased due to increase in sales volume and sales price.
The Company reported a loss of PKR 13,045 million compared to loss of PKR 9,556 million during the same period of last year due to high exchange losses and finance cost. There are several risks faced by the Company inherent to the industry itself, however, the main challenge for the Company is the interest cost and financial charges accrued on the overdue loans and the non-availability of working capital banking facilities. These, together with operational bottlenecks and unpaid non-banking creditors create operational obstacles to the Company’s growth and profitability.
The corporate revival plan, based primarily on the restructuring of its bank debt is on track and is designed to lead to the injection of required fresh equity by a potential investor. It is expected that the Company will be able to conclude its restructuring in the next few months. The aim of this process is to ensure that the Company has adequate liquidity and working capital to run smooth operations with optimized profitability. The proposed process would include rescheduling of debt, revival of existing letter of credit facilities, settlement of some part of the debt and injection of required fresh equity.
