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

By MG News | October 30, 2019 at 03:27 PM GMT+05:00

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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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