National Refinery suffers over Rs7 billion loss amid rising expenses

ISLAMABAD: National Refinery Limited has reported a significant net loss of Rs7.24 billion (LPS: Rs90.5) for the quarter ending September 2024, as rising costs and falling revenues impacted its performance.

This is a stark contrast to the Rs3.2 billion profit (EPS: Rs40.05) the company recorded in the same period last year.

The company’s revenue dropped by 9.3 per cent to Rs66.98 billion, down from Rs73.83 billion in the same quarter last year. At the same time, the cost of sales surged by 10.2 per cent, leading to a gross loss of Rs6.3 billion for the quarter.

Despite the tough conditions, other income increased by 39.2 per cent, reaching Rs105.8 million compared to Rs76.01 million in the same period last year.

On the expense side, administrative costs saw a slight rise of 0.2 per cent, totalling Rs279.5 million, while selling and distribution expenses more than doubled, jumping 108.6 per cent to Rs209.68 million.

According to Mettis Global, the company’s finance costs also saw a significant increase of 97.0 per cent, reaching Rs2.89 billion, up from Rs1.47 billion in the same period last year.

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