Byco Petroleum Pakistan announced its financial results for the year that ended on June 30, 2020, showing a loss of Rs. 2.430 billion. The losses have grown by 44.65% as compared to last year. The company had declared a loss of Rs. 1.683 billion in the year ended June 30, 2019.
“During the year, despite facing a 15 percent fall in crude oil prices, Byco was able to limit the reduction in the company’s gross sales by only 5 percent, from Rs. 252 billion to Rs. 239 billion in the previous year, through the implementation of prudent strategies,” the company said in a statement.
Byco reported a decrease of 12.1 percent in net sales for the year ending June 30, 2020, to Rs. 173.89 billion as compared to Rs. 197.83 billion for the previous financial year. The cost of sales of the company was decreased to Rs. 171 billion as compared to Rs. 195.87 billion.
Byco’s gross profits, however, increased by 48.21 percent to Rs. 2.9 billion from Rs. 1.96 billion last year due to better pricing of crude cargos. Operating expenses remained within the budget, but due to the rupee depreciation, the company booked an exchange loss of Rs. 514 million. Finance costs were increased to Rs. 3.96 billion from Rs. 3.06 billion due to higher KIBOR rates.
The global energy industry in general and the oil refiners in Pakistan in particular have been facing some of the most daunting challenges in recent times. The rapid spread of COVID-19 brought business activities to a standstill, pushed the global economy into a recession, decimated fuel demand, and reduced oil prices to historic lows.
Oil demand in Pakistan fell by 35 percent following nationwide lockdown in March and April 2020. The company reported a loss per share (LPS) of Rs 0.46 as compared to LPS of 0.32.
At the time of filing this report, BYCO’s share at the bourse was trading at Rs. 11.01, up by Rs. 1.00 or 9.99 percent, with a turnover of 15.16 million shares on Friday.