Karachi: National Refinery Limited (NRL) has reported a significant increase in revenue for the fiscal year ended June 30, 2024, despite facing higher net losses compared to the previous year. The financial results reveal a complex fiscal period highlighted by both growth in revenue and challenges leading to increased losses.
In 2024, NRL's revenue from contracts with customers rose to Rs. 396.93 billion, up from Rs. 352.60 billion in 2023, marking a noticeable improvement in sales. However, after accounting for trade discounts, taxes, duties, levies, and price differentials, the net revenue stood at Rs. 308.84 billion, compared to Rs. 298.81 billion the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the cost of sales also increased significantly, leading to a gross loss of Rs. 316.61 billion compared to a profit of Rs. 13.20 billion in 2023. The transition from a gross profit to a gross loss reflects substantial challenges in managing production and operational costs.
Operating expenses further illustrate the financial strain on NRL, with finance costs netting Rs. 9.31 billion, a substantial increase from a loss of Rs. 16.24 billion in 2023. The company's loss before tax widened to Rs. 18.66 billion from Rs. 5.12 billion in the prior year, indicating escalating financial pressures.
The net loss after taxation for NRL deepened to Rs. 15.79 billion, a significant jump from a loss of Rs. 4.46 billion in 2023. This equates to a loss per share of Rs. 197.46, markedly higher than the Rs. 55.81 reported in the previous year.
Despite these challenges, NRL reported some positive movements in its statement of comprehensive income. Other comprehensive income for the year included gains from the remeasurements of post-employment benefit obligations, totaling Rs. 408.19 million, slightly lower than Rs. 441.03 million in 2023.
In summary, while National Refinery Limited managed to increase its revenue streams in 2024, it faced significant financial challenges that not only eroded its profitability but also deepened its financial losses. The detailed financial performance showcases the volatility and the pressures within the refining sector, reflecting the broader economic conditions affecting such industries.