Karachi December 28 2021: National Refinery Limited communicated to exchange thay only the Fuel Refinery of the Company has been shut down due to scheduled Turnaround for around three (03) weeks and Lube Refineries are under normal operations.
The same has already been mentioned in Annual Report 2021.
During the first quarter ended September 2021, the demand for crude oil and petroleum products increased leading to steady rise in petroleum product prices and slight improvement in Gross Refining Margins. The throughput was maintained at 64%.
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During the first quarter, NRL earned profit after tax of Rs. 406 million resulting in earning per share of Rs. 5.08 as compared to loss after tax of Rs. 1,311 million that resulted in loss per share of Rs. 16.40 in the corresponding period. Fuel segment of the Company incurred loss after tax of Rs. 1,567 million as compared to loss after tax of Rs. 1,150 million in the same period last year mainly due to sharp devaluation of Pak Rupee against US Dollar. The exchange loss for the period stood at Rs. 1,071 million as compared to net exchange gain of Rs. 206 million during the corresponding period. Economies across the globe showed some recovery after series of lockdowns.
Lube Segment earned profit after tax of Rs. 1,973 million as compared to loss after tax of Rs. 161 million during the corresponding period last year. Improvement in sales volume have been witnessed due to restoration of economic activities all over the country and resumption of lube refinery operations after successful revamp of Two Stage Distillation Unit in September 2020. Consequently, throughput has been increased to 85% from 49% attained in the same period last year.
Company’s working capital financing requirement has increased considerably due to levy of sales tax on crude oil purchases and continuous downward adjustment of sales tax on petroleum products. Resultantly, the Company has incurred markup expense of Rs. 448 million during the quarter as compared to Rs. 347 million in the corresponding period.
Refineries are in constant discussion with the Government to provide some relief to refineries for sustainable operations as well as for upgradation. The Government is currently reviewing the proposals and the Company expects some progressive outcome.