Pakistan Refinery Posts Whopping 123% Profit Growth for FY24

Pakistan Refinery Limited (PRL) has concluded the fiscal year 2023-24 with exceptional financial and operational performance, marking one of the most successful periods in the company’s history. PRL reported a profit after taxation of Rs. 4.06 billion in FY24, a 123 percent increase from Rs. 1.82 billion in the previous fiscal year, underscoring the company’s sound operational strategies and its commitment to delivering value to its stakeholders. This achievement is especially impressive considering the significant REUP FEED expenses of Rs. 7.18 billion incurred during the year. The company’s earnings per share also saw a remarkable surge, increasing to Rs. 6.45 from Rs. 2.90 in the prior year. This growth in earnings per share underscores PRL’s focus on maximizing shareholder value, further emphasized by the Board of Directors’ recommendation of a final cash dividend of Rs. 2 per share for the year ending June 30, 2024. This year has been transformative for PRL, underscored by a remarkable increase in profitability, record-breaking production levels, and strategic advancements that have positioned the company for sustained growth. The Refinery Expansion and Upgrade Project (REUP) is central to these achievements, a cornerstone of PRL’s long-term strategy to enhance capacity and produce cleaner, high-quality fuels. The company’s unwavering commitment to operational excellence, coupled with a forward-thinking approach to market dynamics, has driven these accomplishments and reinforced PRL’s leadership in the energy sector. Throughout the year, PRL achieved several key operational milestones that further solidified its industry standing. The company recorded unprecedented High-Speed Diesel (HSD) and Motor Spirit (MS) production levels. HSD production reached 660,180 MT despite a 38-day planned turnaround with an average daily production stand at 2,013 MT, the highest ever recorded. MS-92 production also reached an all-time high with an annual production of 265,710 MT and a daily production rate of 810 MT. Additionally, PRL produced 16,005 MT of MS-95, including 1,940 MT of Euro V-compliant fuel. PRL’s strategic initiatives in crude oil procurement have significantly bolstered its financial performance. The company procured and processed Russian crude, which proved to be commercially, logistically, and technically viable, and opened additional crude sourcing avenues. Notably, PRL is the only refinery to have executed the Upgrade and Escrow Account Agreements under the Refining Policy within the stipulated deadline, with Rs. 4.2 billion already deposited in the Escrow Account by June 2024. Looking forward, PRL is well-positioned to maintain its growth trajectory, with the successful completion of the REUP and other strategic initiatives on the horizon. The company is poised to enhance its production capabilities and meet evolving market demands, all while upholding the highest standards of operational excellence and corporate responsibility.