Byco Petroleum Pakistan Ltd. (BPPL), Pakistan’s largest oil refining company, Saturday reported financial results for the three months ended 30 September 2020. The company recorded a 23% decrease in gross sales to Rs 48.4 billion from Rs 62.9 billion in the same period last year, mainly due to a more than 30% decrease in oil prices in the international markets, says a Press release.
Byco Petroleum reported a gross profit of Rs 1.7 billion, down 18% from Rs 2.08 billion last year. Net profit fell to Rs 453 million, or Rs 0.09 per share, from Rs 870 million, or Rs 0.16 per share, a year earlier. The decrease in profits was partly due to the positive impact of the Pakistani Rupee’s appreciation on last year’s financial results.
The first quarter was a mixed period for Pakistan’s oil refining industry. The industry benefited from easing of lockdowns and lifting of travel restrictions, both at home and abroad, which helped stabilize international oil prices. As economic activity resumed, demand for petroleum products recovered in Pakistan. However adverse weather conditions, particularly the torrential rains, disrupted business operations. Margins on High-Speed Diesel (HSD) weakened but Premier Motor Gasoline (PMG) and Furnace Oil (FO) witnessed margin expansion.
