Ayesha Mudassar

National Refinery Limited (NRL) earned a profit-after-tax of Rs3.2 billion in the first quarter of the ongoing fiscal year 2023-24 (1QFY24) against a loss-after-tax of Rs4.3 billion over the corresponding period of the earlier fiscal, WealthPK reports.

As per the condensed interim financial statement, NRL posted a huge gross profit of Rs7.3 billion during 1QFY24 as compared to a tiny Rs26 million in 1QFY23. The significant rise in gross profit caused a substantial increase in profit from operations. Furthermore, the company posted a massive profit-before-tax (PBT) of Rs5.1 billion in the period mainly due to a 72.6% decline in finance costs over the previous year. NRL observed a year-on-year increase of 8% in revenue, which amounted to Rs73.8 billion. However, the cost of sales declined by 2.7% during the period under review.

Furthermore, the company posted earnings per share of Rs40.05 in 1QFY24 as compared to a loss per share of Rs54.92 in 1QFY23. The significant turnaround in financial performance is mainly attributed to consistent increases in petroleum product prices and effective exchange rate measures. Additionally, the measures taken by the government to address vulnerabilities along porous borders resulted in the restoration of demand for petroleum products to a certain extent.

Quarterly review

Quarterly analysis reveals that the first quarter (July-September) of FY24 contributed the most to the consolidated yearly financials of NRL. The company made the highest net sales, profit-before-tax, and profit-after-tax in this quarter.

Moreover, NRL witnessed profit and loss fluctuations in all the four quarters of FY23. In the first quarter (July-September) of FY23, the company posted a net revenue of Rs68.3 billion and a net loss of Rs4.3 billion. In the second quarter (October-December), the company posted a net revenue of Rs91.5 billion, but a net loss of Rs1.09 billion. In the third quarter (January-March), the company hit a net revenue of Rs72.1 billion and a net loss of Rs539 million. The last quarter (April-June), however, posted net sales and net profit of Rs66.7 billion and Rs1.5 billion, respectively.

Company profile and future outlook

National Refinery was incorporated in Pakistan on August 19, 1963, as a public limited company. The company is engaged in the manufacturing, production and sale of a large range of petroleum products. Amidst a continuously changing economic landscape, the refinery is striving to be a leading organisation that continuously produces high-quality, diversified, environment-friendly energy resources and petrochemicals.

Credit: INP-WealthPk