Kohinoor Energy reports 57% drop in 1HFY25 profit to Rs325mn

February 27, 2025 (MLN): Kohinoor Energy Limited (PSX: KOHE) has reported a 57% decline in net profit for the half-year ended December 31, 2024, with profit after tax falling to Rs325 million, compared to Rs757mn in the same period last year.

Earnings per share (EPS) for the period fell to Rs1.92, compared to Rs4.47 in the previous year.

The decline in earnings is attributed to a significant reduction in revenue and an increase in finance costs.

The company’s revenue dropped by 63% to Rs2 billion from Rs5bn in the previous year, largely due to lower sales.

The cost of sales also declined by 72.6%, amounting to Rs1bn, resulting in a gross profit of Rs761mn, which reflects a 26.6% decrease from last year’s Rs1bn.

Administrative expenses rose 19% to Rs196mn, while other expenses surged 4645.4% to Rs40mn, adding further strain to the company’s profitability.

However, other income increased 481% to Rs30mn, providing some relief to the overall earnings.

Operating profit stood at Rs555mn, marking a 36.6% decline from Rs876mn recorded in the same period last year.

A sharp 88.4% increase in finance costs to R 222.5mn further impacted the bottom line, reducing profit before taxation to Rs326.7mn, down 57% year-over-year.

The company also faced higher taxation expenses, including a 917.5% increase in final tax levy, which amounted to Rs6mn.