KARACHI: Pakistan Refinery Limited (PRL) on Tuesday announced financial results for quarter ended March 31, 2021. The accumulated losses of the company contracted at Rs17.74 billion by March 31, 2021 as compared with loss of Rs18.36 billion by June 30, 2020.
In addition, current liabilities of the company exceeded its current assets by Rs14.49 billion as March 31, 2021 as against Rs16.84 billion by June 30, 2020.
The company ended the period with negative cash and cash equivalents amounting to Rs5.65 billion as against Rs10.19 billion on June 30, 2020.
The company said: “These conditions may cast significant doubt on the company’s liability to continue as a going concern and the company may be unable to realize its assets and discharge its liabilities in the normal course of business.”
The refinery further said that right issue of one ordinary share of every one share held amounting to Rs3.15 billion, announced in February 2020 to address negative equity and liquidity issues was completed during the period thereby increasing the share capital to Rs6.3 billion.
“Further, by changing crude recipe and operational philosophy during the current financial year, company was able to produce IMO-2020 grade Marine Residual Fuel (MRF), a premium product and Euro-II High Speed Diesel for a certain period that enabled the company to earn additional revenues,” it said.
However, sustainable production of above high premium products is tied with long term crude arrangements, it added.
The company’s ability to produce Petrol (MS) 92, 95 and RON has resulted in saving of RON differential price adjustment on MS and also generated additional revenues to the company during the period.
“All these efforts helped the company in earning profit after taxation of Rs621 million for nine-month period ended March 31, 2021 as compared with loss after tax of Rs6.77 billion in the same period of the last year.”
The company said: “Based on the cumulative impact of factors mentioned above, the company believes that it will continue as a going concern and will be able to realize its assets and discharge its liabilities in the normal course of business.”