Karachi October 28 2021: National Refinery Limited throughput has been increased to 85 percent from 49 percent attained in the period from July to September 2021, as per information provided by the company.
During the period, National Refinery Limited earned profit after tax of PKR 406 million resulting in earning per share of PKR 5.08 as compared to loss after tax of PKR 1,311 million that resulted in loss per share of PKR 16.40 in the corresponding period. Fuel segment of the Company incurred loss after tax of PKR 1,567 million as compared to loss after tax of PKR 1,150 million in the same period last year mainly due to sharp devaluation of Pak Rupee against US Dollar.
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The exchange loss for the period stood at PKR 1,071 million as compared to net exchange gain of PKR 206 million during the corresponding period. Economies across the globe showed some recovery after series of lockdowns.
Resultantly, 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%. Lube Segment earned profit after tax of PKR 1,973 million as compared to loss after tax of PKR 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.
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 PKR 448 million during the quarter as compared to PKR 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.