Hascol petroleum reported an 84.50% decline in profits to just Rs. 206.33 million for the year ended December 31, 2018.
The company booked a profit of Rs. 1.32 billion in 2017.
The huge decline was seen thanks to exchange loss due to the depreciation of Rupee against US dollar and low sales volumes at times when oil prices were higher.
The net sales of the company were stated at Rs. 234 billion which were up by 34.55% from Rs. 174 billion in 2017. The cost of sales increased by 34.35% to Rs. 224 billion as the gross profit clocked in at Rs. 10.27 billion, up by 39.0% from Rs. 7.38 billion in 2017.
The growth in gross profit was overshadowed by the exchange losses, however.
Moreover, there was a drastic increase in distribution and administrative expenses as they soared to Rs. 4.80 billion, up by 43.54% as compared with Rs. 3.27 billion in the previous year.
The finance cost also saw an increase of 127% to Rs. 1.32 billion against Rs. 582 million. The noteworthy decline in profits was due to the exchange loss, as it soared to Rs. 3.9 billion up by a massive 390.50% due to the depreciation of rupee against the US dollar since December 2017.
Other income (which includes rent income, storage and handling income and profit on bank deposit) rose to Rs. 527 million from Rs. 417 million in the previous year.
The company’s Earnings per share stood at Rs. 1.14, as compared to Rs. 8.11 in last year. Moreover, the company also announced a bonus issue at 10%.
At the time of filing this report, Hascol’s shares at the bourse were trading at Rs. 117.10, down by Rs. 2.35 or 1.97% with a turnover of 36,000 shares on Thursday.