Hascol Petroleum Limited has finally announced its annual results for the year ending 31 December 2021.
It has reported a net consolidated loss of Rs. 7.57 billion for the year ended, as compared to a net loss of Rs. 23.53 billion in 2021 which cut its losses by 68 percent.
According to the company’s official press release, it managed to earn positive Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of Rs. 1.354 billion compared to the previous year’s negative EBITDA of Rs. 11.771 billion despite the numerous challenges from regulatory and macroeconomic factors.
Despite the non-availability of working capital lines from banks, the credit support from the company’s single majority shareholder, Vitol, has played a role in this achievement.
Hascol’s press release reads that it appointed a new Chief Executive Officer and a new Chief Finance Officer and the core management has worked tirelessly under active guidance from the Board of Directors to ensure that the company’s financial statements have been prepared and presented in a way that gives a true and fair view of the affairs of the company.
However, its net sales were down by 45.32 percent to Rs. 64.46 billion as compared to Rs. 114.89 billion in 2020. Its cost of sales was also down by 46.5 percent to Rs. 62.14 billion from Rs. 116.14 billion.
The company’s loss per share decreased to Rs. 7.58 from Rs. 23.68. Hascol’s scrip at the bourse was closed at Rs. 6.94, up by Rs. 0.35 or 5.31 percent, with a turnover of 64.11 million shares on Tuesday.
According to a market expert, the company may see inventory gains ahead which will aid the bottom line. Moreover, any possible debt restructuring will help alleviate the company’s going concern pressures
According to a report by JS Research, below is the break-up of Hascol’s loan as per the latest information. The brokerage house understands that most of these loans have been provided by different banks.
Hascol Debt Breakup
| Banks | Short-term Loan (Rs. Million) | Long-term Loan (Rs. Million) | Total Loan (Rs. Million) | % |
| National Bank of Pakistan | 10,433 | 8,376 | 18,809 | 35% |
| Habib Bank Limited | 5,095 | 204 | 5,299 | 10% |
| Meezan Bank | 2,295 | 1,775 | 4,070 | 7% |
| Habib Metro | 3,917 | 71 | 3,988 | 7% |
| Askari Bank | 3,044 | 37 | 3,081 | 6% |
| Bank of Punjab | 2,000 | 887 | 2,887 | 5% |
| Sindh Bank | 2,022 | 0 | 2,022 | 4% |
| Bank of Khyber | 1,806 | 0 | 1,806 | 3% |
| Al Baraka | 1,782 | 0 | 1,782 | 3% |
| Bank Alfalah | 969 | 799 | 1,768 | 3% |
| Faysal Bank | 1,756 | 0 | 1,756 | 3% |
| BankIslami | 840 | 710 | 1,550 | 3% |
| Dubai Islamic Bank Pakistan | 656 | 621 | 1,277 | 2% |
| Samba Bank | 972 | 0 | 972 | 2% |
| United Bank | 750 | 0 | 750 | 1% |
| First Women Bank | 738 | 0 | 738 | 1% |
| Summit Bank | 635 | 0 | 635 | 1% |
| Sukuk | 0 | 500 | 500 | 1% |
| MCB Bank | 401 | 0 | 401 | 1% |
| First Habib Modaraba | 0 | 160 | 160 | 0% |
| Pakoman Investment | 0 | 93 | 93 | 0% |
| 40,111 | 14,233 | 54,344 | 100% |
The company is encouraged by some recent decisions made by the Government of Pakistan to increase the regulated margins, something which significantly improves the potential profitability of the sector. Any proposed deregulation will bring about a dynamic change to the sector and widespread benefits.
The company aims to put on a sound footing for the years ahead.
