HASCOL suffers heavy losses due to adverse economic challenges

August 29, 2019 (MLN): Hascol Petroleum Limited has incurred losses of Rs. 11.1 billion (LPS: Rs. 56.09) for the half year period ended June 30, 2019. This performance is poles apart from the results announced in the same period of last year, wherein the company declared profits of Rs. 1 billion (EPS: Rs. 5.16)

The company’s performance was heavily dented by decline in net sales revenue by 29%, as well as increase in distribution and administrative expense by 79% and 23% respectively.

On top of that, the company paid income taxes of Rs. 3.5 billion during the said period, unlike in SPLY where it got tax relief of around Rs. 587 million.

In a separate notice to Pakistan Stock Exchange, the company disclosed that the disappointing performance during the stated period was a consequence of extreme economic challenges prevailing in the country.

Profit and loss account for the half year ended June 30, 2019 (Rupees’000)

June, 2019

June, 2018

% Change

Sales – net

100,586,150

147,524,398

-31.82%

Less: sales tax

-14,551,988

-25,791,309

-43.58%

Net sales

86,034,162

121,733,089

-29.33%

Other revenue

388,590

374,569

3.74%

Net revenue

86,422,752

122,107,658

-29.22%

Cost of products sold

-86,314,966

-116,294,012

-25.78%

Gross profit

107,786

5,813,646

-98.15%

Distribution and marketing

-2,974,960

-1,660,693

79.14%

Administrative

-549,057

-446,125

23.07%

Other expense

-6,324,049

Other income

195,274

199,012

-1.88%

Operating (loss) / profit

-9,545,006

3,905,840

Finance cost

-2,650,019

-435,154

508.98%

Exchange loss – net

-2,479,818

-1,854,550

33.72%

(Loss) / profit before taxation

-14,674,843

1,616,136

Taxation

3,506,527

-587,951

(Loss) / profit for the period

-11,168,316

1,028,185

(Loss) / earnings per share – basic and diluted (Rs)

-56.09

5.16

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Posted on: 2019-08-29T15:07:00+05:00

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