NRL posts Rs4.65bn loss in 1HFY24, down by 13.16% YoY

February 06, 2024 (MLN): National Refinery Limited (PSX: NRL) has reported a loss after tax of Rs4.653 billion [LPS: Rs58.19] in 1HFY24, down by 15.15% YoY compared to the Rs5.484bn [LPS: Rs68.58] loss recorded in the Same Period Last Year (SPLY).

Going by the results, the company's revenue from contracts with customers rose by 8.03% YoY to Rs197.56bn as compared to Rs182.88bn in 1HFY23.

The net revenue calculation includes the payment of Rs 42.01 billion in taxes, duties, levies, and price differentials by NRL, showing a significant YoY increase of 82.59%.

As a result, the net revenue of the company edged lower to Rs155.55bn in 1HFY24, down by 2.7% YoY.

Despite a decrease in the cost of sales to Rs 157.8 billion, the greater proportion of the decline in sales resulted in a negative gross profit. This is in contrast to the positive profit of Rs102.12m reported last year.

On the expense side, the company observed a decrease in Distribution costs by 78.33% YoY and other expenses by 51.03% YoY to clock in at Rs178.86m and Rs14.87m respectively during the review period.

Meanwhile, the administrative expenses of the company rose 19.41% YoY to Rs587.25m, further contributing to NRL's losses.

During the period under review, other income of NRL contracted by 8.7% YoY to stand at Rs133.18m in 1HFY24 as compared to Rs145.87m in SPLY.

The company’s finance costs deflated by 44.41% YoY and stood at Rs3.45bn as compared to Rs6.2bn in 1HFY24, despite higher interest rates.

On the tax front, the company incurred a tax rebate worth Rs1.68bn against the Rs1.81bn tax credit in the corresponding period of last year, depicting a decrease of 7.13% YoY.

Amount in thousands except for EPS

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