Karachi: Burshane LPG (Pakistan) Limited has released its financial results for the fiscal year ending June 30, 2024, reporting a substantial decline in net sales and an increase in annual losses. The company attributed the downturn to a reduced local LPG quota and higher prices of imported LPG, which have significantly impacted its sales volume.

According to the company's corporate briefing, Burshane LPG's net sales fell to Rs. 2,377.50 million, a decrease of Rs. 1,156.10 million, or 32.72%, from the previous year. The sales volume during the year was recorded at 11,867 metric tons, marking a 65.70% decline compared to the previous period. The gross profit for the year stood at Rs. 137.94 million, representing a decrease of Rs. 13.16 million from last year's figure.

The company's financial report further outlined operating losses amounting to Rs. 138.37 million, despite other income of Rs. 65.67 million. Financial costs were reported at Rs. 429,000, while the loss before minimum tax differential and income tax was Rs. 69.82 million. After taxation, Burshane LPG recorded a net loss of Rs. 73.68 million for the year, with a basic loss per share of Rs. 3.28.

According to information available from the Pakistan Stock Exchange (PSX), the challenging economic environment and the fragmented nature of the LPG industry in Pakistan, with over 250 licensed companies, have further complicated market dynamics. The company noted the industry's increasing dependence on imported LPG as a key supply source.

Despite the unfavorable market conditions, Burshane LPG expressed its commitment to pursuing growth in sales by exploring new sales avenues and opportunities. The company aims to enhance its market share by capitalizing on the increasing consumer and industrial demand for gas.

As Burshane LPG navigates the current economic challenges, its strategic focus remains on achieving value creation and improving supply metrics, amidst a highly competitive and diluted market environment.