Karachi: Cnergyico Pk Limited has released its annual financial report for the year ending June 30, 2025, revealing a substantial net loss despite notable revenue growth. The company, operating within the oil sector, encountered multiple headwinds, including decreased refinery margins and a depreciating local currency, which adversely affected its financial performance.
On October 2, 2025, the company announced a gross revenue increase of 31% to Rs. 387.6 billion, up from Rs. 295.1 billion in 2024. This growth was driven by a 39% rise in volumetric sales, although it was partially offset by a 10% decline in global oil prices and a stable Pakistani Rupee. Despite the revenue uptick, Cnergyico reported a gross profit of Rs. 4.9 billion, a decrease of approximately 60% from the previous year's Rs. 12.4 billion, primarily due to shrinking global refinery margins.
The company recorded a net loss of Rs. 2.89 billion compared to a net profit of Rs. 1 billion the previous year. The loss translated into a basic and diluted loss per share of Rs. 0.53, in contrast to last year's earnings per share of Rs. 0.18. The financial setbacks were exacerbated by a depreciation expense of Rs. 6.8 billion.
According to information available from the Pakistan Stock Exchange (PSX), the company's financial leverage ratios and profitability ratios were significantly impacted. The interest coverage ratio fell to 0.54 times, indicating challenges in meeting interest obligations. Furthermore, the return on equity showed a negative value of -1.4396%, a big move from the previous positive return, highlighting the financial strain on the company.
The annual report detailed numerous challenges faced by the oil sector, including geopolitical instability, which led to volatility in crude prices and trade flows. Notable events, such as the Israel-Iran conflict in June, caused Brent crude prices to surge to $79.50, impacting market dynamics. Additionally, regulatory changes within Pakistan, such as the imposition of a Petroleum Levy and Carbon Support Levy on local Fuel Oil sales, further strained the company's operations.
The report also highlighted issues affecting domestic operations, including rampant product smuggling and excessive imports that undermined local refinery production. The company's management urged the government to intensify efforts in combating illegal trade and regulating imports to ensure the sustainability of local refineries.
Despite these challenges, the company acknowledged positive developments, such as increased nationwide oil consumption and lower financing costs due to a decline in KIBOR rates, which partially alleviated financial pressures.
Cnergyico Pk Limited's board expressed gratitude to stakeholders for their continued support and reiterated their commitment to navigating the volatile market landscape. The board remains focused on strategic adjustments and operational efficiencies to enhance financial stability in the years to come.