Lower taxes reverse decline in PRL’s pre-tax profits

October 23, 2020 (MLN): Pakistan Refinery Limited (PRL) has posted net profits of Rs 281 million in 1QFY21, depicting a rise of 55% YoY. However, its pre-tax profits suffered an 8.61% decline as compared to the corresponding period of last year.

This has translated into earnings per share which clocked in at Rs 0.49 against the earnings per share of Rs 0.42 in the aforementioned period.

According to the financial results issued to PSX, PRL witnessed a 50.57% YoY decline in topline which was attributable to asymmetrical changes in international prices of crude, resulting in a reduction of gross profits by 12% YoY to Rs 881 million despite a 52% decrease in the cost of sales.

Moreover, an increase in administration and other operating expenses by 11% and 6%, YoY, respectively also contributed to weakening the financial stability of the refinery.

The major highlight is a 51% YoY decrease in taxes which reversed a decline in the refinery’s profits during 1QFY21.  

Profit and Loss Account for the quarter ended September 30th, 2020 ('000 Rupees)

 

Sep-20

Sep-19

% Change

Revenue from contracts with customers

 17,658,857

 35,721,442

-50.57%

Cost of sales

 (16,777,655)

 (34,719,052)

-51.68%

Gross profit

 881,202

 1,002,390

-12.09%

Distribution cost

 (53,416)

 (66,534)

-19.72%

Administrative expenses

 (99,483)

 (89,968)

10.58%

Other operating expenses

 (37,147)

 (34,970)

6.23%

Other income

 33,955

 97,338

-65.12%

Operating profit

 725,111

 908,256

-20.16%

Finance cost

 (309,789)

 (453,801)

-31.73%

Profit before taxation

 415,322

 454,455

-8.61%

Taxation

 (133,484)

 (273,141)

-51.13%

Profit after taxation

 281,838

 181,314

55.44%

Earnings per share – basic and diluted (rupees)

 0.49

 0.42

16.67%

 

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Posted on: 2020-10-23T15:44:00+05:00

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