Karachi: Hascol Petroleum Limited announced a significant increase in its net loss for the first quarter of 2025, reflecting a challenging economic environment marked by exchange rate fluctuations and geopolitical tensions. On March 31, 2025, the company reported a net loss of Rs. 3,090 million, compared to Rs. 1,739 million in the corresponding period of the previous year. This represents a very large or significant move in financial performance, driven primarily by a foreign exchange loss of approximately Rs. 500 million and a decline in operational performance due to price instability.
The company’s net sales for the period stood at Rs. 47,078 million, with a reported gross profit of Rs. 587.44 million, down from Rs. 878.94 million in the previous year. The operating loss for the quarter was Rs. 799.87 million, a reversal from an operating profit of Rs. 478.94 million in the previous year. The basic and diluted loss per share increased to Rs. 3.09 from Rs. 1.74.
According to information available from the Pakistan Stock Exchange (PSX), Hascol’s financial performance was impacted by several external factors. Geopolitical tensions, particularly the Pakistan-India conflict and unrest between Israel and Iran, have led to increased oil prices due to fears of supply disruptions. This, coupled with rising freight and insurance costs, has exacerbated the demand for U.S. dollars, further pressuring the Pakistani rupee and the broader economy.
Despite these challenges, Hascol achieved an 80% volumetric growth in Q1 compared to the same period last year. The company is working to address financial pressures by finalizing the restructuring of its banking liabilities to improve liquidity and operational performance. Efforts are also underway to accelerate digital transformation through partnerships with SAP, TMC, and JazzCash, aiming to enhance digital innovation and customer engagement.
The outlook for Hascol Petroleum remains challenging as it navigates ongoing economic and geopolitical uncertainties. The company expressed gratitude to its employees, customers, financial institutions, suppliers, and all stakeholders for their support, while also acknowledging the assistance provided by the Government of Pakistan and its regulatory bodies.