National Refinery faces massive Rs8.27 billion loss as expenses soar

WEB DESK: National Refinery Limited faced a challenging financial quarter ending June 2024, reporting a substantial after-tax loss of Rs8.27 billion, or Rs103.39 per share.

This marks a dramatic turnaround from the profit of Rs1.56 billion, or Rs19.52 per share, recorded during the same period last year.

According to Mettis Global, the company saw an 8.2 per cent increase in sales revenue, which reached Rs72.26 billion, up from Rs66.78 billion a year ago. Despite this rise in revenue, the cost of sales jumped by nearly 25 per cent, resulting in a gross loss of Rs4.6 billion for the quarter.

Gross margins, which were 7.9 per cent in the previous year, plummeted to -6.4 per cent, highlighting the increased financial strain. Additionally, the company’s other income fell sharply by 55.3 per cent, dropping to Rs107.27 million from Rs239.89 million last year.

On the expenses front, administrative costs saw a slight reduction of 2.7 per cent, amounting to Rs299.33 million. However, selling and distribution expenses surged by 122.8 per cent, reaching Rs370.62 million.

Other operating expenses experienced an enormous rise of 1191.9 per cent, totaling Rs74.49 million.

The company’s finance costs increased by 46.0 per cent, reaching Rs3.26 billion, up from Rs2.24 billion in the previous year, driven primarily by higher interest rates.

In a significant shift, the company paid Rs234.58 million in taxes this quarter, a notable change from the tax credit of Rs1.21 billion received in the same period last year.

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