Karachi: The Directors of Burshane LPG (Pakistan) Limited have disclosed a marked decline in the company’s financial performance for the period ending December 31, 2024, attributing the downturn primarily to diminished local LPG quotas and elevated import prices.
The company’s sales volume fell significantly to 3,426 metric tons, representing a 54.37% decrease of 4,082 metric tons compared to the same period last year. This downturn in sales volume resulted in net sales dropping to Rs. 688.90 million, a reduction of Rs. 789.37 million or 53.40% from the previous year. Consequently, the gross margins stood at Rs. 28.24 million, a reduction of Rs. 73.85 million from the previous comparable period.
Administrative expenses decreased by Rs. 6.76 million, reflecting a 12.50% reduction, mainly due to a decline in litigation expenses. Distribution and marketing expenses also saw a decrease of Rs. 2.54 million. Financial costs were reduced by Rs. 4.91 million, attributed to a decline in KIBOR rates. The company’s loss before tax was reported at Rs. 44.40 million, marking a decrease of Rs. 47.88 million from the last year’s comparative period. The loss per share stood at Rs. 2.05, contrasting with earnings of Rs. 0.11 per share in the previous period.
According to information available from the Pakistan Stock Exchange (PSX), the company received a revised loan restructuring proposal from NBP on January 6, 2022, which has since been accepted and executed. The restructuring includes the categorization of the long-term loan and accrued mark-up into Demand Finance-I and Demand Finance-II. The remaining outstanding loan of Rs. 154 million has been converted into a running finance facility.
The company is involved in ongoing legal challenges, including a complaint filed by the Directorate of Investigation and Intelligence (Inland Revenue) on August 31, 2020, alleging tax evasion of approximately PKR 1.7 billion. The Special Court for Customs, Taxation, and Anti-Smuggling passed orders to freeze the company’s nine bank accounts for 90 days and issued non-bailable arrest warrants for certain directors. The company secured protective bail from the High Court and later from the Special Court, with the freeze on bank accounts lifted after the 90-day period expired.
Burshane LPG’s market category remains focused on liquid petroleum gas distribution, facing challenges amidst fluctuating quotas and market prices.