Hascol Petroleum Ltd. finally announced its financial results for the year ended December 31, 2020, simultaneously restating financial statements for CY19 and CY18.
The company reported a net consolidated loss of Rs. 25.2 billion for the year ended on December 31, 2020, compared to a net loss of Rs. 35.1 billion in 2019, cutting its losses by 28.2 percent.
A chairman’s note released along with the financial results informed in a filing to the PSX, that the company discovered “inaccurate entries in its 2019 accounts” and subsequently restated its results from 2018 through 2020.
He noted that the recent years have been challenging for the global petroleum industry due to extreme volatility in international oil prices and demand shocks.
The company discovered inaccurate entries in 2019 accounts and immediately reported these to its national regulators. Simultaneously restating its financial statements for 2019 and 2018, Hascol posted a loss of Rs. 25 billion for 2020, a loss of Rs. 35.20 billion in 2019 and a loss of Rs. 3.4 billion in 2018.
Hascol Petroleum Ltd. has been in financial trouble since 2018. Its revenues have dropped, losses pilled, and loans have risen, sending its share price down from around Rs. 300 three years ago to just Rs. 6.53.
The company’s revenue witnessed a sharp decline since 2018, and with accumulating losses and rising debts, Hascol’s share price dropped down from around Rs. 300 in 2018 to just Rs. 6.53.
The collapse in demand caused by the pandemic critically damaged Hascol. Consequently, the company entered into negotiations with its banks in 2021 to comprehensively restructure and refinance its liabilities, appointing leading global advisors, Alvarez & Marsal, to advise on reconstructing. The company, in close coordination with the Board, has been negotiating with major banks on the restructuring. “An agreement is expected soon towards restructuring of Hascol’s bank debt to long-term debt,” stated the chairman’s note.
Former UK Minister, Sir Alan Duncan, was appointed chairman, replacing Mumtaz Hasan Khan. The then CEO, Saleem Butt, was replaced in 2020. Sir Alan Duncan and the new management have been working tirelessly in coordination with the Board to restore Hascol to profitability, said the statement issued by the company.
The company reported a loss per share of Rs. 25.39 as compared to Rs. 93.15.
hahhaaa. Fraud management. SECP should look into it.