KARACHI: The net profit of Byco Petroleum Pakistan Ltd. fell sharply by 96 percent for the first half ending December 31, 2018 due to depreciation in Pak Rupee value and weak upliftment of furnace oil.
Byco Petroleum Pakistan Ltd. (BPPL) on Tuesday announced financial results for the six months ending on 31 December 2018.
The net profit was Rs. 89 million as compared with Rs2.3 billion a year earlier, said a press release.
On a per share basis, the company earned Rs0.02 per share during the six months ending on 31 December 2018 as opposed to Rs0.44 per share in the prior year.
Byco Petroleum generated a gross profit of Rs1.4 billion in the first half of the current fiscal year compared with a profit of Rs4.7 billion a year earlier.
The company’s gross sales increased by an impressive 52 percent during the first half of the fiscal year from the same period in the previous year to Rs123.47 billion.
The company said that it was a difficult period for Pakistan’s energy industry however, and particularly so for the oil refining industry.
The country witnessed a 14 percent drop in the value of the Pakistani Rupee against the US dollar.
The oil price environment was highly volatile as the international Brent oil price jumped to annual highs then plunged to annual lows within a few months.
Meanwhile, the upliftment of furnace oil (FO) remained weak in the country.
This challenging backdrop had a negative impact on Byco Petroleum Pakistan Limited’s refinery throughput as well as refining margins.
However, the management made every effort to minimize the company’s exposure to the tough market.
Byco Petroleum is fully committed to improving its operating and financial performance in the future, said the press release.