Byco Petroleum Pakistan Limited has announced its financial results for nine months ending March 31, 2020.
The company has reported a massive loss of Rs. 2.67 billion as compared with a profit of Rs. 719.62 million in the same period last year. The sales of the company were reported at Rs. 144.43 billion, almost flat as compared with Rs. 145.21 billion recorded in the same period last year.
The cost of sales was increased to Rs. 143.23 billion from Rs. 142.18 during the period.
Its gross profits fell to Rs. 1.2 billion, down by 60% as compared with Rs. 3 billion a year earlier due to the negative impact of the exchange rate and an increase in inventory losses amid weak demand in the nine months ending March 31, 2020.
The company said that the global oil industry is currently going through one of the most challenging periods ever.
The Brent oil price fell from $67 per barrel in early-January to $23 by late-March as the spread of COVID-19 and the ensuing travel restrictions and strict lockdowns enacted by various governments around the world weakened demand for crude oil as well as oil products.
“Despite facing unfavorable conditions, Byco Petroleum continued to operate consistently during the reporting period. Thereafter, as the petroleum demand weakened in the country, the company temporarily shifted its facilities into cold circulation,” it said in its statement.
The finance cost of the company increased by 36.62% to Rs. 2.91 billion as compared with Rs. 2.13 billion in the corresponding period of the same year as a rise in KIBOR rates pushed finance costs higher during the period.
Byco reported a loss per share of Rs. (0.50) as compared with EPS of Rs. 0.14.