Karachi July 4 2024: Hascol Petroleum Limited reported loss of PKR 17.2 billion in 2023 compared to PKR 14.4 billion last year despite improvement in gross profit.
The Company achieved a gross profit of PKR 4,614 million (2022: PKR 3,183 million), making a notable improvement. Despite working capital issues, the Company managed to show improvement in its financial results over last year.
Due to the devaluation of currency against US dollar, current price mechanism for foreign exchange compensation coupled with limited working capital lines, the Company recorded realized exchange loss amounting to PKR 3,861million as compared to PKR 2,073 million in 2022 primarily on settlement of import contracts.
The loss before tax of PKR 17,160 million is mainly driven by the financing cost of PKR 11,008 million on overdue loans; Exchange loss both realized and unrealized amounting to PKR 5,799 million; and Depreciation and amortization (other than ROU Depreciation) being a non-cash cost amounting to PKR 2,130 million.
The Company is working towards restructuring of its banking liabilities to address the factors affecting its operational performance. Once these issues are resolved, the company has the potential to generate positive results and show a strong presence in the market
