Pakistan Refinery Limited · PSX:PRL
Pakistan Refinery — FY2020 Earnings Presentation
24 slides from Pakistan Refinery's earnings presentation, Jun 30, 2020
Slide 1: Corporate Briefing Session for year ended June 30, 2020
Pakistan Refinery Limited Corporate Briefing Session For year ended June 30, 2020 1
Slide 2: Table of contents
Table of contents Refinery operations Financial highlights Principle Risks and Uncertainties Future Outlook
Slide 3: Table of contents
Table of contents Refinery operations Financial highlights Principle Risks and Uncertainties Future Outlook
Slide 4: PRL Network Diagram
PRL Network Diagram TPPL TPPL
Slide 5: Crude and Product Mix
Crude and Product Mix CRUDE MIX (M. TONS) JUL 19 - JUN 20 Local Champion / SLEB 17.69% 1.57% — Upper Zakum 3.99% ASL DAS 4.29% 52.18% KSL 10.10% Arabian Light ACTUAL SALES MIX (M. TONS) ARIES JUL 19 - JUN 20 MS pool 18.91% HSFO 26.35% Kero / Jet fuel _LPG 7.03% Naphtha MRF 4 579% 4.04% 1.46% a] r
Slide 6: Petroleum Products Market share 2019-20
Petroleum Products Market share 2019-20 PARCO , 15% BYCO , 11% Imported, 50% Local, 50% NRL, 8% ARL, 8% PRL, 6% Others, 1% Source: OCAC Oil Book 2019-20
Slide 7: Table of contents
Table of contents Refinery operations Financial highlights Principle Risks and Uncertainties Future Outlook
Slide 8: Statement of profit / loss account
Statement of profit / loss account
Slide 9: Financial highlights
Financial highlights • The events surrounding the Covid-19 pandemic (the virus) continue to evolve and impact local and global markets. The spread of the virus has resulted in authorities implementing numerous measures to try to contain the virus, such as travel bans and restrictions, quarantines an
Slide 10: Financial highlights
Financial highlights • The Board of Directors in its meeting dated February 10, 2020 announced a Right issue at par value of Rs. 10 per share in the ratio of 1 right share for every 1 share held. The total size of the issue was Rs. 3.15 billion. To facilitate completion of right issue process in the
Slide 11: Financial highlights
Financial highlights • As already announced in Pakistan Stock Exchange, the Company in light of new operational strategy has undertaken various non-capex options which assist the Refinery to comply with the regulatory requirements but will also have a positive impact on the Company’s profitability.
Slide 12: Financial highlights
Financial highlights 3) The changes in crude recipe and operational philosophy made the Company the first refinery in Pakistan to produce IMO-2020 grade Marine Residual Fuel (MRF). MRF is a premium product and will add to the margins of the Company. The Company has already started production of MRF
Slide 13: Financial highlights
Financial highlights • Petroleum products’ prices continued to decline during the year and after the onset of the impacts of Covid-19 plunged sharply before recovering to some extent towards the end of the year. This resulted in huge inventory losses suffered by the Company during the year. • Under
Slide 14: Financial highlights
Financial highlights • The Company adopted stringent controls over cash flow and liquidity management which remained under pressure due to losses suffered by the Company. The Company’s running finance and short term loan facilities increased to Rs. 16.45 billion as compared to Rs. 15.55 billion in t
Slide 15: Financial highlights
Financial highlights R E V E N UE F R O M C O N T R AC T S W I T H G R O S S P R O F I T / ( LO S S ) C U STO M E RS 3,000 2,579 160,000 1,990 2,000 1,045 115,741 1,000 120,000 Rs in million - 92,229 Rs in million 90,524 (1,000) 80,000 64,733 69,998 (2,000) (3,000) 40,000 (3,174) (4,000) (5,000) (4,
Slide 16: Financial highlights
Financial highlights N E T C A S H F LO W NET CURRENT LIABILITIES 12,000 18,000 16,840 16,000 8,000 14,000 3,855 4,000 12,000 10,895 Rs in million Rs in million 1,350 1,171 10,000 - 8,046 8,000 7,364 (4,000) (1,792) 6,000 4,452 4,000 (8,000) 2,000 (12,000) (10,654) - 2016 2017 2018 2019 2020 2016 20
Slide 17: Table of contents
Table of contents Refinery operations Financial highlights Principle Risks and Uncertainties Future Outlook
Slide 18: Principal risks and uncertainties
Principal risks and uncertainties • The Refinery operates under policy framework of the Government of Pakistan (GoP). Further, the pricing of certain products is regulated / monitored by the Ministry of Energy (MoE) which are primarily on import parity pricing basis. Changes in international pricing
Slide 19: Principal risks and uncertainties
Principal risks and uncertainties • The Company’s dependence on bank borrowings exposes it to liquidity and interest rate risks. Therefore, any increase in policy rates by SBP results in increase in finance cost and a negative impact on the results of the Company. Further, withdrawal of any major fi
Slide 20: Table of contents
Table of contents Refinery operations Financial highlights Principle Risks and Uncertainties Future Outlook
Slide 21: Future prospects and risk mitigation measures
Future prospects and risk mitigation measures • The Company has renewed its operational philosophy and is now exploring new avenues to make the Refinery sustainable through production of better margin products. In this regard, the Company is in contact with various crude suppliers to secure long ter
Slide 22: Future Outlook
Future Outlook • The Company has initiated the work on Refinery Upgrade Project including meeting regulatory requirements of installation of DHDS Unit to produce EURO II compliant HSD. This project has upgrade considerations also for changing the product slate to a more profitable mix; primarily to
Slide 23: Thank you
Thank you
Slide 24: Q&A
Q&A