Karachi: Cnergyico PK Limited, a leading player in Pakistan's oil and petroleum sector, reported a significant turnaround in its financial performance for the fiscal year 2023-24, marked by a record profit and substantial operational expansions, according to details provided during their recent corporate briefing session.
The oil giant announced a net profit of PKR 1.008 billion for the year ending June 2024, a stark contrast to the PKR 12.663 billion loss incurred the previous year. This improvement is attributed to a 24% increase in net revenue, reaching PKR 240.626 million, driven primarily by heightened refinery throughput and more favorable market conditions for petroleum products.
According to information available from the Pakistan Stock Exchange (PSX), the company's gross profit surged to PKR 12.430 billion, recovering from a gross loss of PKR 9.749 billion last year. The substantial shift in financials was supported by an improved crack spread, the appreciation of the Pakistani Rupee against the US dollar, and strategic inventory management that minimized price loss.
Cnergyico PK’s operations include the country's largest oil refining unit, ORC 2, with a capacity of 120,000 barrels per day, and a smaller unit, ORC 1, processing 36,000 barrels per day. Both refineries are linked to large-sized isomerization units capable of converting up to 12,500 barrels per day of Light Naphtha into motor gasoline, enhancing the company's output of high-margin products.
The company's oil marketing business (OMB) also reflected strong performance, with the segment profit more than doubling to PKR 3.029 billion from PKR 1.196 billion in the previous year. Cnergyico PK manages over 470 retail stations across Pakistan, with key storage facilities strategically located to optimize distribution.
Looking ahead, Cnergyico PK is set to further enhance its infrastructure under the newly approved Pakistan Oil Refining Policy for Upgradation of Existing/Brownfield Refinaries 2023. This includes a billion-dollar refinery upgrade project aimed at increasing production of high-speed diesel and premier motor gasoline, while significantly reducing furnace oil output to comply with Euro V standards.
The future outlook remains cautiously optimistic as the company navigates challenges such as the recent changes in the Finance Act, which have impacted the taxation of petroleum products. The company is actively engaging with government bodies to find viable solutions to maintain the sustainability of its operations.
Cnergyico PK's continued growth and adaptation in the face of industry-wide challenges highlight its strategic resilience and commitment to maintaining a strong market presence.