Karachi October 31 2022: Cnergyico PK Limited (CNERGY) reported loss of PKR 6.5 billion due to extremely low refinery throughput.
“There have been unprecedented rainfalls followed by devastating floods in almost every part of the country. The heavy flooding in the area surrounding the Company’s refineries severely damaged the road network to the extent that the primary bridge connecting Hub City and onwards with Karachi got completely washed away. This has severely affected the refineries’ logistics and therefore throughputs” says Company Chairman Mohammad Wasi Khan.
Wasi Khan added, “While the Government has initiated reconstruction work on the bridge, nevertheless, it is expected to take around 2 years to complete. The company is managing refineries’ products movement through make-shift arrangements and dirt roads as alternate routes, but, as expected, this is creating significant hazards and delays, while the Company continues to try and ensure all possible safety protocols are met. We have requested the Government and continue to impress upon them to put in the best efforts in order to restore the road infrastructure as soon as realistically possible.”
During the first quarter, the Pak Rupee further depreciated against USD to PKR 242/$, however, the State Bank of Pakistan’s (SBP) weighted average rate was declared at PKR 225/$, thereby causing enormous amounts of exchange losses to all the import-based industries.
In first quarter, the Company recorded net sales of PKR 52.7 billion as compared to PKR 34.4 billion in the same period last year which was due to increased oil prices and severe PKR depreciation. Extremely low refinery throughput, resulted in a gross loss of PKR 4.6 billion compared to the gross profit of PKR 751 million in the same period last year.
Expenses remained in line except for finance costs, which doubled due to KIBOR and increased oil prices. The Company incurred a loss after tax of PKR 6.5 billion with basic I diluted loss per share of Rs. 1.23 and Rs. 1.19 respectively as compared to the loss after tax of PKR 673 million with basic I diluted loss per share of Rs. 0.13 and Rs. 0.12 respectively in the same period last year.
