Byco Petroleum Pakistan Ltd. (BPPL), one of the country’s largest oil companies has announced its financial results for Q3 2019.
Byco’s net profit for the quarter doubled to Rs. 870.76 million compared to a profit of Rs. 396.70 million in Q3 2018.
Despite a challenging economic environment, Byco Petroleum reported gross sales of Rs 62.9 billion, up by 5.14% compared to Rs. 66.38 billion in the corresponding period of last year.
Net sales of the company were reported at Rs. 49.07 billion, down by 8.60% compared to Rs. 53.71 billion last year. Byco’s gross profit increased by 24% to Rs 2.1 billion from Rs 1.68 billion a year earlier.
This increase can be attributed to stability in Pakistani Rupee’s exchange rate and improvement in Motor Spirit (MS) prices over Naphtha. The company also received a tax incentive for the period.
Oil prices remained largely steady and the value of the Pakistani Rupee improved slightly compared to the US Dollar. However, due to an overall slowdown in Pakistan’s economy, the consumption of petroleum products has declined, except for MS which was stable.
The finance costs increased as KIBOR rates climbed to 13.9% in September 2019 from 8.6% in Q3 2018.
Byco Petroleum also successfully settled a restructured loan of Rs. 17 billion and fully cleared the dues of an exploration company. By resolving these issues in a difficult economic backdrop, Byco Petroleum has demonstrated its ability to withstand tough market conditions.
The company is confident that it will continue showing resilience in the face of economic pressures and will emerge stronger as Pakistan’s economy eventually recovers which will push the demand of petroleum products higher.
Earnings per share of the company were reported at Rs. 0.16 as compared to Rs. 0.07.