Pakistan’s largest vertically integrated oil refining company, Byco Petroleum Pakistan Limited, reported the financial results for the year that ended on 30 June 2021.
The net profit climbed to Rs. 3.6 billion as compared to the loss of Rs. 2.4 billion loss last year.
Despite tough business conditions, it earned revenue of Rs. 142.1 billion and a gross profit of Rs. 8.1 billion during the twelve months, from Rs. 173.8 billion and Rs. 2.9 billion respectively last year.
The operational climate for the oil refineries remained challenging during the fiscal year. On the one hand, the prices of and demand for oil increased, driven by the re-opening of the global economy that gave respite to the oil sector. Oil consumption in Pakistan started to recover to the pre-pandemic levels, with the growths of Motor Spirit and High-Speed Diesel.
Earnings per share of the company were reported at Rs. 0.67 as compared to a loss per share of Rs. 0.46.
Byco’s efficient management of the crude oil ordering system also had a positive effect on the earnings.
On the other hand, the economy continues to feel the effects of the pandemic and the persistent threat of economic slowdown due to a new wave of infections.
Moreover, the persistent weakness in the consumption of Furnace Oil remains a challenge. Byco is committed to providing high-quality and environmentally friendly fuels to customers while reducing Pakistan’s reliance on imported petrol and diesel and saving foreign exchange. It is upgrading and modernizing its facilities in line with this strategy.
Byco welcomes the government’s initiative to devise a new Oil Refining Policy in light of the current market conditions. This development has been overdue since the last Petroleum Policy was introduced in 1997. The company hopes that the new policy will usher in a new era of growth in the petroleum industry.
Byco has the largest capacity crude oil storage tanks in the country. Its marketing network supports retail outlets in more than 80 cities all over Pakistan, and it is an emerging player in the country’s oil marketing sector.