Karachi: Kohinoor Energy Limited has reported a significant drop in its earnings per share for the first quarter ended September 30, 2024, reflecting lower sales and increased costs. The company, a key player in the energy sector, disclosed its interim financial results during a recent board meeting held at its plant site near Raiwind Bypass, Lahore.

According to information available from the Pakistan Stock Exchange (PSX), Kohinoor Energy's sales for the quarter amounted to 1.46 billion rupees, a sharp decline from 3.93 billion rupees recorded in the same period last year. The cost of sales also decreased, albeit at a slower rate, resulting in a gross profit of 500.62 million rupees compared to last year's 717.18 million rupees.

The company's profit before tax stood at 313.74 million rupees, down from 576.50 million rupees a year ago. This was primarily due to higher finance costs, which surged to 110.73 million rupees from 68.08 million rupees. Additionally, the firm's earnings per share fell from 3.40 rupees in 2023 to 1.85 rupees in 2024.

Kohinoor Energy attributed the downturn to various market and operational challenges, including increased expenses in administration and general operations which tallied at 88.13 million rupees, up from 72.50 million rupees the previous year.

Despite the financial setbacks, the company declared no cash dividends and issued no bonus shares for the quarter, underscoring a conservative approach to capital management amidst financial headwinds.

Kohinoor Energy's financial results are critical indicators of the broader challenges facing the energy sector, marked by fluctuating sales and escalating costs. The company has stated that the detailed quarterly report will be available through the Pakistan Corporate Restructuring Company's system within the specified time, ensuring full transparency and regulatory compliance.