National Refinery Limited Reports Significant Loss in Half-Year Financial Results

Karachi, National Refinery Limited (NRL) disclosed its financial performance for the half year ended December 31, 2023, revealing a substantial increase in its loss after taxation compared to the same period in the previous year. According to the unaudited condensed interim statement of profit or loss, the company faced a loss after taxation of Rs. 7,855,832 thousand for the quarter ended December 31, 2023, marking a significant rise from a loss of Rs. 1,092,875 thousand in the corresponding quarter of 2022. For the half-year period, the loss after taxation stood at Rs. 4,653,130 thousand, compared to Rs. 5,484,240 thousand in 2022.

The report indicates a decrease in revenue from contracts with customers, from Rs. 105,150,141 thousand in the quarter ending December 31, 2022, to Rs. 103,004,897 thousand in the same quarter of 2023. For the half-year period, however, revenue increased from Rs. 182,879,199 thousand in 2022 to Rs. 197,562,455 thousand in 2023. Despite the increase in half-year revenue, the company’s net revenue from contracts with customers decreased, from Rs. 159,870,817 thousand in the first half of 2022 to Rs. 155,552,094 thousand in the corresponding period of 2023.

Cost of sales remained high, resulting in a gross loss of Rs. 9,597,658 thousand for the quarter and a gross loss of Rs. 2,243,764 thousand for the half year, a stark contrast to the slight profit and minimal loss reported in the same periods of the previous year. The financial statement also showed an operating loss of Rs. 9,546,448 thousand for the quarter and Rs. 2,891,569 thousand for the half year, exacerbated by significant finance costs netting Rs. 1,979,806 thousand for the quarter and Rs. 3,445,458 thousand for the half year.

The loss per share for the half year ended December 31, 2023, was reported at Rs. (58.19), compared to Rs. (68.58) in the same period of the previous year, reflecting the increased financial strain on the company.

This financial announcement to the Pakistan Stock Exchange highlights the challenges faced by National Refinery Limited in the reported period, marking a significant downturn in its financial health.