Ayesha Mudassar

Cnergyico Pakistan Limited (CNERGY) reported a net loss of Rs1.5 billion for the first quarter of Fiscal Year 2025, reflecting a notable improvement compared to a net loss of Rs2.5 billion recorded in the corresponding period of the earlier fiscal, reports WealthPK.

The company registered a reduction in net loss despite the depressed global refining margins, driven by a sharp decline in the prices of crude oil and petroleum products. Furthermore, the nationwide demand for refined petroleum products, particularly diesel and furnace oil, experienced a volumetric decrease compared to the same quarter in the previous year. As per the results available with the Pakistan Stock Exchange (PSX), the company’s revenue increased by 70% year-on-year (YoY) to Rs57.1 billion, up from Rs33.5 billion in the first quarter of FY24; however, the cost of sales rose by 71% YoY, totaling Rs56.7 billion compared to Rs33.1 billion in 1QFY24.

This resulted in a gross profit of Rs329.2 million in 1QFY25 – a significant downturn from the prior year. On the expense side, the selling and distribution costs grew by 19% YoY, while the other expenses decreased by 83% YoY to Rs153.5 million and Rs128.6 million, respectively, during the review period. Moreover, the company’s finance cost declined by 51% YoY to Rs1.2 billion compared to Rs2.4 billion in 1QFY24. On the tax front, CNERGY paid substantially higher taxes of Rs291.4 million compared to Rs167.6 million paid during the corresponding period last year, a 74% YoY rise.

Cnergyico Pakistan Limited (CNERGY) was incorporated in Pakistan as a public limited company in 1995 and is engaged in oil refinery business and petroleum marketing business with the latter being launched in 2007.  CNERGY was previously known as Byco Petroleum Pakistan Limited. As of June 30, 2024, CNERGY had 5.4 billion shares, which were held by 26,610 shareholders. Associated companies, undertakings, and related parties owned the majority stake of 73.4%, followed by the general public, holding 20.9%. Around 1% of the shares were held by Modarabas and mutual funds, while the remaining shares were distributed among other categories of shareholders.

Fiscal Year 2024

Cnergyico Pakistan Limited (CNERGY) has announced a net profit of Rs1 billion for the Fiscal Year 2024, marking a remarkable recovery from a net loss of Rs12.6 billion in FY23. The company’s revenue rose 24% YoY to Rs240.6 billion, up from Rs193.9 billion in FY23. Correspondingly, the cost of sales grew by 12% YoY, totaling Rs228.1 billion compared to Rs203.6 billion in FY23. This resulted in a gross profit of Rs12.4 billion in FY24 — a significant improvement from the previous year.

On the expense side, the company experienced increased selling and distribution expenses, which rose by 32% YoY to Rs635.2 million. The administrative costs increased by 24% YoY, reaching Rs1.5 billion during the year. During the year, the country’s economic environment has remained challenging, marked by rising operational costs, high inflation, and fluctuating refining margins. However, these issues have been effectively mitigated by implementing appropriate policies and robust risk management strategies.

Credit: INP-WealthPk