Hascol Petroleum Limited (PSX: HASCOL) posted a net loss of Rs3.05 billion [LPS: Rs3.05] for the quarter ending June 2024, a slight improvement compared to the Rs3.24 billion [LPS: Rs3.24] loss reported in the same period last year (SPLY).
Revenue and Gross Profit Decline
The company’s revenue shrank by 34.0%, falling to Rs36.99 billion in Q2 FY24 from Rs56.06 billion in SPLY. Despite a 33.3% decrease in the cost of sales, the decline was not proportional to the drop in revenue, leading to a 56.1% reduction in gross profit, which stood at Rs735.46 million in Q2 FY24. As a result, gross margins decreased to 2.0%, down from 3.0% in SPLY.
Financial Performance Highlights
- Revenue: Rs36.99 billion, down 34.02% YoY
- Gross profit: Rs735.46 million, down 56.08% YoY
- Gross margins: 2.0% vs. 3.0% in SPLY
- Finance cost: Rs2.55 billion, down 3.3% YoY
- Taxation: Rs186.76 million, down 17.3% YoY
- Net loss: Rs3.05 billion, down 5.69% YoY
- Basic loss per share (LPS): Rs3.05 vs. Rs3.24 in SPLY
Expense Control and Tax Reduction
While the company’s administrative and selling expenses saw minimal changes, finance costs decreased by 3.3%, amounting to Rs2.55 billion. Additionally, Hascol paid a lower tax of Rs186.76 million, a 17.3% reduction from Rs225.78 million in the same period last year, translating to a marginally reduced effective tax rate of 6.5% compared to 7.5% in SPLY.
Despite the continued losses, Hascol’s financial performance shows minor improvements in cost control, leading to a 5.69% reduction in the overall loss compared to last year.
Financial Summary (Un-audited for Q2 FY24)
| Item | Jun 24 | Jun 23 | % Change |
|---|---|---|---|
| Sales | 36,985,492 | 56,057,833 | -34.02% |
| Cost of Sales | (36,250,034) | (54,383,443) | -33.34% |
| Gross Profit | 735,458 | 1,674,390 | -56.08% |
| Administrative Expenses | (223,269) | (223,843) | -0.26% |
| Selling and Distribution Expenses | (820,225) | (822,334) | -0.26% |
| Other Gains/Losses | (71,609) | (346,616) | -79.34% |
| Other Income | 67,485 | (19,294) | – |
| Finance Cost | (2,552,381) | (2,638,099) | -3.25% |
| Net Profit/Loss | (3,051,301) | (3,235,496) | -5.69% |
| Basic Loss Per Share (LPS) | (3.05) | (3.24) | – |
Despite the challenging environment, Hascol Petroleum continues its efforts to stabilize financials amid ongoing market pressures.
