CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED DECEMBER 31, 2024
REFINING WITH VISION
Contents
02 Corporate Information
- Directors' Review - English
- Directors' Review - Urdu
- Auditor's Report
- Condensed Interim Statement of Financial Position
- Condensed Interim Statement of Profit or Loss
- Condensed Interim Statement of Comprehensive Income
- Condensed Interim Statement of Changes in Equity
- Condensed Interim Statement of Cash Flows
- Notes to the Condensed Interim Financial Statements
NATIONAL REFINERY LIMITED
Corporate Information
Board of Directors | Auditors | ||
Laith G. Pharaon | A. F. Ferguson & Co. | ||
Alternate Director: Sajid Nawaz | Chartered Accountants | ||
Wael G. Pharaon | Legal Advisor | ||
Alternate Director: Babar Bashir Nawaz | Ali Sibtain Fazli & Associates | ||
Shuaib A. Malik - Chairman | Legal Advisors, Advocates & Solicitors | ||
Abdus Sattar | Bankers | ||
The Bank of Punjab | |||
Shamim Ahmad Khan | Habib Bank Limited | ||
Tariq Iqbal Khan | Meezan Bank Limited | ||
Allied Bank Limited | |||
Khondamir Nusratkhujaev | National Bank of Pakistan | ||
MCB Bank Limited | |||
Chief Executive Officer | Bank Alfalah Limited | ||
United Bank Limited | |||
Asad Hasan | |||
Faysal Bank Limited | |||
Chief Financial Officer | Habib Metropolitan Bank Limited | ||
BankIslami Pakistan | |||
Nouman Ahmed Usmani | Dubai Islamic Bank | ||
Samba Bank Limited | |||
Company Secretary | Bank AL-Habib Limited | ||
Badruddin Khan | Askari Bank Limited | ||
Industrial & Commercial Bank of China Limited | |||
Audit Committee | Registered Office | ||
Shamim Ahmad Khan | Chairman | ||
7-B, Korangi Industrial Area, Karachi-74900 | |||
Abdus Sattar | Member | P.O. Box: | 8228, Karachi-74900 |
UAN: | +92-21-111-675-675 | ||
Babar Bashir Nawaz | Member | PABX: | +92-21-35064981-86 |
Alternate Director for Mr. Wael G. Pharaon | Website: | +92-21-35064977-79 | |
Muhammad Atta ur Rehman Malik | Secretary | www.nrlpak.com | |
E-mail: | info@nrlpak.com | ||
Human Resource and Remuneration (HR&R) Committee | Share Registrar | ||
CDC Share Registrar Services Limited | |||
Shamim Ahmad Khan | Chairman | ||
CDC House, 99-B, Block 'B', S.M.C.H.S., | |||
Shuaib A. Malik | Member | ||
Main Shahra-e-Faisal, Karachi - 74400. | |||
Babar Bashir Nawaz | Member | Tel: | (Toll Free) 0800-23275 |
Fax: | +92-21-34326053 | ||
Alternate Director for Mr. Wael G. Pharaon | |||
Email: | info@cdcsrsl.com | ||
Asad Hasan | Member | Website: | www.cdcsrsl.com |
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NATIONAL REFINERY LIMITED
Directors' Review
On behalf of the Board of Directors of National Refinery Limited, I am presenting a brief review of the financial results and operations of your Company for the half year ended December 31, 2024.
The second quarter witnessed steadily increasing trend in the product prices together with increase in sales volume, resulting in improvement in company's Gross Refining Margin (GRM), which turned positive to the tune of Rs. 2.9 billion during the quarter as against the company's negative GRM of Rs. 1.7 billion in the first quarter. Although, the company undertook essential plant maintenance activities in the month of December 2024, which temporarily impacted the production levels of High-Speed Diesel (HSD) and Motor Spirit (MS), overall sales volume increased to 388,523 M.Tons in the second quarter as compared to 340,514 M.Tons in the first quarter. In alignment with the company's strategic focus on optimizing operational efficiency aiming to maximize Diesel production while rationalizing the output of bottom of the barrel, the company recalibrated its crude mix by gradually increasing the proportion of lighter crude during the current quarter, which has further contributed in the positive margins of the company for the quarter. Consequently, the company managed to curtail its operating loss to Rs. 1.6 billion for December-quarter, a significant recovery from Rs. 6.7 billion operating loss recorded in the September-quarter.
Given the prevailing challenges, particularly the decline in margins and product prices observed during the first quarter together with depressed sales due to industry-wide higher stock levels and lower product demand as a result of smuggled products' influx, the company reported a loss of Rs. 11.73 billion for the six months ended December 31, 2024 as compared to loss of Rs. 4.65 billion in the same period last year. Additionally, the sustained increase in utilities costs continued to exert pressure on company's financial results during the period.
In view of the foregoing, Fuel segment of the company incurred loss after tax amounting to Rs. 12.07 billion during the current six months. Whereas, there was loss after tax of Rs. 4.39 billion in the same period last year. Throughput of Fuel segment increased to 54.16% as compared to 50.37% in the corresponding period.
Lube Segment earned profit after tax of Rs. 339 million as compared to loss after tax of Rs. 259 million during the corresponding period last year. This improvement was driven by a notable increase in the local sales volume of Lube Base Oils, which rose by 13,561 M.Tons from the same period last year, leading to a recovery in the segment's margins.
The company's borrowings remained elevated, primarily driven by the financing of working capital needs, operational losses, and higher inventory levels of Furnace Oil caused by port congestion at the period's end. This increase in average borrowings led to higher finance costs during the period. However, with a continuous decline in mark-up rates and the realization of Furnace Oil stocks through exports post-31st December, finance costs are expected to decrease in the coming periods, providing some financial relief.
In December 2024, the company has secured a 3-year based medium-term loan with a one-year grace period for repayment.
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NATIONAL REFINERY LIMITED
Under the Pakistan Oil Refining Policy for upgrade of Brown Field Refineries 2023, approved in August 2023 as amended in February 2024, the company completed the process of signing of upgrade agreement in April 2024. However, the same could not be signed from the Government side. Later on, through Finance Act 2024, status of major petroleum products was changed from taxable to exempt resulting in increase in company's operating cost as well as upgrade project cost. The refineries are in continuous discussion with the Ministry of Energy (Petroleum Division) and Oil & Gas Regulatory Authority to resolve the matter so that progress could be made in the signing of the upgrade agreement.
In December 2024, Mr. Asad Hasan joined the company as Chief Executive Officer. We extend a warm welcome to him and are confident that his extensive experience in the refining sector will be instrumental in navigating through the current challenges and driving the company towards sustained growth and success.
We thank our shareholders, customers and staff for their continuous support and trust in the Company.
On | |
Rawalpindi | |
January 27, 2025 | Chairman |
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NATIONAL REFINERY LIMITED
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NATIONAL REFINERY LIMITED
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31, 2024
Note |
ASSETS |
NON-CURRENT ASSETS |
(Unaudited) | (Audited) |
December 31, | June 30, |
2024 | 2024 |
(Rupees in thousand)
Property, plant and equipment | 5 |
Intangible assets | |
Long-term investment | |
Long-term loans | |
Long-term deposits | |
Deferred taxa�on | 6 |
Re�rement benefit prepayments | |
CURRENT ASSETS | |
Stores, spares and chemicals | |
Stock-in-trade | 7 |
Trade receivables | |
Loans and advances | |
Trade deposits and short-term prepayments | |
Interest accrued | |
Other receivables | 8 |
Taxa�on - payments less provisions | |
Short-term investments | 9 |
Cash and bank balances | 10 |
TOTAL ASSETS | |
EQUITY AND LIABILITIES | |
SHARE CAPITAL AND RESERVES | |
Share capital | |
Reserves | |
LIABILITIES | |
NON-CURRENT LIABILITIES | |
Long-term borrowing | 11 |
Lease liability | |
Re�rement benefit obliga�ons | |
CURRENT LIABILITIES | |
Trade and other payables | 12 |
Unclaimed dividend | |
Unpaid dividend | |
Accrued mark-up | |
Provisions | |
Borrowings | 13 |
Current por�on of lease liability | |
TOTAL LIABILITIES | |
CONTINGENCIES AND COMMITMENTS | 14 |
22,378,768
3,256
14,822
13,715
30,265
13,817,807
781,746
37,040,379
1,982,978
44,226,333
11,006,088
88,670
501,554
68,895
7,233,877
2,523,020
4,873,603
374,243
72,879,261
109,919,640
799,666
6,683,984
7,483,650
15,000,000
114,562
606,226
15,720,788
39,568,434
59,065
43,669
1,261,144
112,361
45,652,259
18,270
86,715,202
102,435,990
23,555,669
3,915
14,822
20,280
30,265
10,931,383
757,326
35,313,660
1,802,405
49,719,863
9,855,369
104,574
55,638
68,179
2,943,508
2,744,783
-
564,360
67,858,679
103,172,339
799,666
18,416,889
19,216,555
-
143,916
547,712
691,628
29,004,804
59,128
43,658
1,251,885
112,361
52,777,898
14,422
83,264,156
83,955,784
TOTAL EQUITY AND LIABILITIES |
109,919,640103,172,339
The annexed notes 1 to 25 form an integral part of these condensed interim financial statements.
Chief Financial Officer | Chief Executive | Director |
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NATIONAL REFINERY LIMITED
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS
FOR THE HALF YEAR ENDED DECEMBER 31, 2024 (UNAUDITED)
Quarter ended | Half year ended | |||||||||||
Note | December 31, | December 31, | December 31, | December 31, | ||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
(Restated) | (Restated) | |||||||||||
(Rupees in thousand) | ||||||||||||
Revenue from contracts with customers | 15 | 98,930,869 | 103,004,897 | 185,611,822 | 197,562,455 | |||||||
Taxes, du�es, levies and price differen�als | 16 | (24,074,835) | (21,281,257) | (43,779,976) | (42,010,361) | |||||||
Net revenue from contracts | ||||||||||||
74,856,034 | 81,723,640 | 141,831,846 | 155,552,094 | |||||||||
with customers | ||||||||||||
Cost of sales | (76,307,187) | (91,321,298) | (149,580,240) | (157,795,858) | ||||||||
Gross loss | ||||||||||||
(1,451,153) | (9,597,658) | (7,748,394) | (2,243,764) | |||||||||
Distribu�on costs | (120,889) | (78,337) | (330,567) | (178,855) | ||||||||
Administra�ve expenses | (277,711) | (308,350) | (557,210) | (587,254) | ||||||||
Other income | 17 | 231,927 | 57,164 | 337,722 | 133,175 | |||||||
Other opera�ng expenses | 4,115 | 380,733 | (6,892) | (14,871) | ||||||||
Opera�ng loss | ||||||||||||
(1,613,711) | (9,546,448) | (8,305,341) | (2,891,569) | |||||||||
Finance cost - net | 18 | (2,592,896) | (1,979,806) | (5,479,452) | (3,445,458) | |||||||
Loss before taxa�on and levies | ||||||||||||
(4,206,607) | (11,526,254) | (13,784,793) | (6,337,027) | |||||||||
Levies | 19 | (81,297) | (44,963) | (176,167) | (67,157) | |||||||
Loss before Income tax | ||||||||||||
(4,287,904) | (11,571,217) | (13,960,960) | (6,404,184) | |||||||||
Taxa�on | 20 | (208,416) | 3,715,385 | 2,228,055 | 1,751,054 | |||||||
Loss a�er taxa�on | ||||||||||||
(4,496,320) | (7,855,832) | (11,732,905) | (4,653,130) | |||||||||
Loss per share - basic and diluted | Rs. (56.23) | Rs. (98.24) | Rs. (146.72) | Rs. (58.19) | ||||||||
The annexed notes 1 to 25 form an integral part of these condensed interim financial statements.
Chief Financial Officer | Chief Executive | Director |
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