LAHORE-Cnergyico Pk Limited (formerly Byco Petroleum Pakistan Limited) released its financial results for the year ending June 30, 2022 on Thursday. 170 billion, compared to Rs. 142.1 billion in FY2021. Operating profit increased by more than Rs. 2.5 billion (before finance costs and taxes) in FY2022. Net profit for the financial year increased to Rs. 4.7 billion, or Rs. 0.90 per share, from Rs. 3.5 billion, or Rs. 0.67 per share, during the financial year 2021.
Cnergyico Pk Limited successfully capitalized on soaring crack spreads following the Russian-Ukrainian conflict, which helped boost the company’s gross profit to Rs. 5.9 billion in the fourth quarter of the year. fiscal 2022, up from an already strong gross profit of Rs. 3.3 billion reported for the third quarter of fiscal 2022. Marketing activity benefited from upward margin revision for Diesel ( HSD) and Motor Spirit (MS) from Rs. 2.97 to Rs. 3.68 per liter from December 2021.
Revenue and net profit growth came despite macroeconomic challenges. The devaluation of the local currency, together with the unusually large difference between the rates quoted by the banks and the weighted average rate announced by the central bank, caused severe foreign exchange losses to the oil sector. Additionally, problems with obtaining confirmed Letters of Credit (LC) from international banks posed a serious threat to the oil supply chain. Rising inflation and higher lending rates have also increased financing and other costs.
Cnergyico CEO Mr. Amir Abbassciy said, “Given the terribly low working capital the company has, it has been able to synchronize around 23% of its refinery capacity. Going forward, this area remains of critical importance to addressal, especially since installs are denominated in PKR and the surge in the USD has again had a big impact on them. For now, it looks like this trend will continue for the foreseeable future, coupled with another rise in crude oil prices that cannot be ruled out. In addition, we remain focused on cost rationalization in the various business segments in which we operate, this is an ongoing task for us to accomplish”.
Cnergyico continues to work diligently to upgrade and modernize its refineries to meet the growing demand for high quality, environmentally friendly fuels while reducing heating oil production. The company is looking forward to the introduction of the oil refining policy and the deregulation of fuel prices to improve the speed of innovation and growth in the oil sector.