March 26, 2021 (MLN): Hascol Petroleum Limited (HASCOL)’s net losses during 9MCY20, amplified by 46% YoY to clock in at Rs.20.9 billion compared to Rs.14.35 billion incurred in the same period last year.
Contrary to this, the loss per share of the company shrank from Rs.38.04/sh to Rs.21.15/sh.
The significant increase in company’s losses was mainly attributable to a 23.5% YoY decline in net sales and 9.6x increase in impairment losses on the financial assets. Not only this, the unprecedented fall in oil prices and devaluation of the currency also had a severe dampening effect on the company’s profitability
Drilling further, the net revenues of the company went down by 23% YoY primarily due to lower sales volume amid lockdown imposed by the government to tackle the covid-19 situation during the period. The gross losses of the company clocked in at Rs.2.49 billion, up by 72.6x YoY, amid higher inventory losses.
Another major blow to the company’s financial performance was an impairment loss of Rs.8 billion compared to Rs.838.3 million in the same period last year.
Furthermore, the company witnessed a 44.8% YoY drop in exchange losses to Rs.1.7 billion and a 3.7% YoY dip in financial charges, which kept a lid on further addition of the losses.
The Company booked a tax charge of Rs.734.4 million during 9MCY20 against tax income of Rs.4.6 billion in the same period last year. According to the report by IGI Securities, the auditors in CY19 annual financial statements highlighted going concern and uncertainty on future profits. As a result, the company cannot utilize its deferred tax asset thus leading to a net tax charge realized in the profit and loss statement during 9MCY20.
|
Consolidated Profit and Loss Account for the nine months ended September 30, 2020 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Sep-20 |
Sep-19 |
% Change |
|
Sales – net |
100,177,337 |
130,254,176 |
-23.09% |
|
Sales tax |
(14,944,771) |
(18,853,882) |
-20.73% |
|
Net sales |
85,232,566 |
111,400,294 |
-23.49% |
|
Other revenue |
348,431 |
210,742 |
65.34% |
|
Net revenue |
85,580,997 |
111,611,036 |
-23.32% |
|
Cost of products sold |
(88,076,624) |
(111,645,376) |
-21.11% |
|
Gross profit |
(2,495,627) |
(34,340) |
7167.41% |
|
Distribution and marketing |
(2,395,178) |
(2,956,406) |
-18.98% |
|
Administrative |
(938,772) |
(820,978) |
14.35% |
|
Impairment losses on financial asset |
(8,098,908) |
(838,373) |
866.03% |
|
Other expenses |
(58,590) |
(6,326,849) |
-99.07% |
|
Other income |
447,315 |
293,936 |
52.18% |
|
Operating (loss) / profit |
(13,539,760) |
(10,683,010) |
26.74% |
|
Finance cost |
(5,052,658) |
(5,246,827) |
-3.70% |
|
Exchange loss – net |
(1,707,537) |
(3,093,130) |
-44.80% |
|
Share of profit from associates |
44,136 |
45,834 |
-3.70% |
|
(Loss) / Profit before taxation |
(20,255,819) |
(18,977,133) |
6.74% |
|
Taxation |
(734,402) |
4,618,149 |
|
|
(Loss) / Profit for the period |
(20,990,221) |
(14,358,984) |
46.18% |
|
(Loss) / Earnings per share – basic and diluted (Rupees) |
(21.15) |
(38.04) |
-44.40% |
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