PRL: Profitability balloons by 8.7x in 9MFY22

April 21, 2022 (MLN): Pakistan Refinery Limited (PRL) has reported splendid growth of 8.7x YoY in its net profit to clock in at Rs5.42 billion (EPS: Rs8.60) for the period of nine months ended on March 31, 2022, compared to Rs621 million (EPS: Rs1.01) in 9MFY21, the company filing on PSX showed today.

During the review period, the topline of the company surged to Rs111.64bn in 9MFY22, up by 73%, compared to Rs64.8bn in 9MFY21.

With regards to major expense heads, the company encountered a 7.6x YoY higher operating expenses which stood at Rs556.7mn while the company witnessed a 22.28% YoY and 21.5% YoY rise in its administrative and distribution expenses, respectively.

Similarly, the finance cost of the company also moved up by 14% YoY to clock in at Rs1.11bn in 9MFY22.

On the taxation side, the company paid Rs1.3bn during the review period, compared to Rs492mn in SPLY.

In addition, the board of directors of has decided to appoint an International Company as the Front End Engineering design (FEED) contractor for the Refinery Expansion and Upgrade Project (REUP) after a competitive bidding process.

The board has also decided to appoint a consortium of local banks as financial advisor to render Advisory and Equity & Local Debt Arrangement services for PRL's REUP.

This expansion project at an estimated cost of $1.2bn will increase the crude processing capacity from 50,000 barrels per day to 100,000 barrels per day significantly reducing High Sulphur Furnace Oil (HSFO) and maximizing premium products such as High-Speed Diesel (HSD) and Motor Spirit (MS/Petrol) meeting EURO V specification.

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