Karachi: Hascol Petroleum Limited has reported its financial results for the year ending December 31, 2024, revealing a mixed performance amid challenging economic conditions. The company, which operates within the designated market category of petroleum and energy, faced persistent inflationary pressures and continued depreciation of the Pakistani Rupee, impacting its financial outcomes.
In 2024, Hascol recorded net sales of PKR 143.81 billion, a decline from the PKR 162.71 billion reported in 2023. This reduction in sales reflects subdued demand across the industry. The gross profit for the year stood at PKR 3.33 billion, down from the previous year's PKR 4.89 billion, largely due to increased cost pressures and declining revenues.
The company reported an operating loss of PKR 1.73 billion for 2024, a significant increase compared to a loss of PKR 353 million in 2023. Elevated finance costs, amounting to PKR 10.54 billion, heavily impacted the company's bottom line. However, a net exchange gain of PKR 211 million provided some relief.
According to information available from the Pakistan Stock Exchange (PSX), Hascol managed to reduce its net loss to PKR 12.66 billion in 2024 from the PKR 17.81 billion loss posted in the previous year. This reduction indicates some progress in stabilizing the company's financial outlook despite a challenging operating environment.
Vitol, Hascol's major shareholder and strategic supplier, played a crucial role in supporting the company's operations throughout the year by securing critical supplies and mitigating risks from logistical and economic disruptions. Vitol's commitment has been essential in sustaining Hascol's operational continuity.
The company's corporate revival plan, which focuses on restructuring bank debt, remains on track and is expected to culminate in a fresh equity injection. This move aims to ensure sufficient liquidity and working capital, enabling Hascol to return to normal operations. The Board of Directors maintained rigorous oversight during this phase to ensure compliance with corporate and regulatory standards.
In addition, Hascol announced the appointment of Mr. Javed Ahmedjee as its new Chief Executive Officer, effective May 5, 2025. This appointment is seen as a significant step for the company, bringing in valuable experience to the Board.
The Board reaffirmed its dedication to strong corporate governance throughout the year, emphasizing efforts to enhance transparency, accountability, and ethical conduct. These values are considered vital for reinforcing stakeholder confidence and supporting the company's long-term success.
The Chairman extended gratitude to shareholders, customers, and other stakeholders for their continued support, expressing optimism that the measures taken during this challenging period will lay the foundation for a stronger and more resilient Hascol in the future.