HASCOL incurs hefty losses of Rs13 billion owing to mounting pressure on oil industry

October 30, 2019 (MLN): Hascol Petroleum Limited has disclosed losses of Rs. 13.8 billion (LPS: Rs. 69.69) for the nine months ended September 30, 2019, against profits of Rs. 1.5 billion (EPS: Rs. 7.57) reported in same period of last year.

According to the Directors Review Report, the third quarter of current year saw a continuing challenging pattern that the company witnessed in the first six months. The volumes of the company fell drastically from 646,000 Metric Tons to 210,000 Metric Tons as compared to the corresponding quarter of 2018.

The overall market of HSD fell by 25% and a meager growth of 2% was witnessed in Motor Gasoline in the third quarter. The overall oil industry remained under pressure amid high interest cost and low demand.

HASCOL has reliance on import of petroleum products and has very minor allocation of local refineries. The exchange losses and the inventory losses combined with unperformed cargoes in the first quarter badly affected the working capital cycle, which resulted in short term borrowing of Rs. 43 billion at the end of the period, resulting in huge financial charges of Rs. 5 billion.

Profit and Loss Account for the nine months ended September 30, 2019 ('000 Rupees)

 

Sep-19

Sep-18

% Change

Sales – net

130,254,176

220,375,883

-40.89%

Sales tax

(18,853,882)

(36,686,924)

-48.61%

Net sales

111,400,294

183,688,959

-39.35%

Other revenue

573,040

615,532

-6.90%

Net revenue

111,973,334

184,304,491

-39.25%

Cost of products sold

(111,805,003)

(176,091,584)

-36.51%

Gross profit

168,331

8,212,907

-97.95%

Distribution and marketing

(4,226,681)

(2,655,233)

59.18%

Administrative

(820,978)

(647,569)

26.78%

Other expenses

(6,324,049)

  

Other income

293,936

341,167

-13.84%

Operating (loss) / profit

(10,909,441)

5,251,272

 

Finance cost

(5,014,129)

(782,616)

540.69%

Exchange loss – net

(2,512,515)

(2,517,381)

-0.19%

(Loss) / Profit before taxation

(18,436,085)

1,951,275

 

Taxation

4,559,078

(444,186)

 

(Loss) / Profit for the period

(13,877,007)

1,507,089

 

(Loss) / Earnings per share – basic and diluted (Rupees)

(69.69)

7.57

 

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Posted on: 2019-10-30T15:27:00+05:00

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