PRL’s profits go up in smoke, posts Rs2.01bn loss

February 03, 2025 (MLN): Pakistan Refinery Limited (PRL) has reported a loss of Rs2.01 billion for the half-year ending December 31, 2024, compared to a profit of Rs6.51bn during the same period in 2023.

This marks a significant decline in profitability, reflecting an overall decrease in revenue and higher operational costs, according to the company’s unaudited financial results.

The company’s revenue from contracts with customers stood at Rs168.88bn, a decrease of 7.3% compared to Rs182.19bn in the previous year.

Despite the drop in revenue, PRL managed to reduce its cost of sales by 1.14%, bringing it down to Rs166.76bn from R168.7bn.

However, the company's gross profit saw a steep decline of 84.27%, plummeting to Rs2.12bn from Rs13.50bn in 2023.

In terms of operational costs, selling expenses increased by 18.97% to Rs393.11 million, while administrative expenses grew by 21.81% to Rs716.87mn.

Other operating expenses were reduced by 11.65%, totaling Rs2.24bn, and other income fell by 29.08%, to Rs1.65bn.

The company’s operating profit dropped dramatically by 96.54%, falling to Rs427.9mn from Rs12.38bn last year.

Finance costs also saw a slight reduction of 4.35%, amounting to Rs1.89bn.

The share of income from associates, accounted for using the equity method, dropped by 85.82% to Rs1.93mn.

In terms of taxation, PRL’s final and minimum tax stood at Rs959.77mn, up by 442.17% compared to Rs177.02mn in 2023.

The company’s overall tax expense resulted in a loss of Rs406.14mn.

The company also reported a basic and diluted loss per share of Rs3.20, a sharp decline from Rs10.33 in the previous year.

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