Karachi: National Refinery Limited (NRL) disclosed a substantial financial downturn in its annual report, with a net loss of Rs. 15.79 billion for the fiscal year ending June 30, 2024, a significant increase from the previous year’s Rs. 4.46 billion loss. According to information available from the Pakistan Stock Exchange (PSX), the economic environment presented numerous challenges including high inflation, stringent monetary policies, and low foreign exchange reserves which adversely affected the refinery’s operations.
During the year, Pakistan’s economic landscape was dominated by efforts to stabilize the economy, including managing imports to control foreign exchange outflows and maintaining high policy rates to curb inflation. These measures were crucial as the country negotiated a critical International Monetary Fund (IMF) bailout package. However, the global decline in oil prices led to substantial inventory losses for NRL, particularly in the second and fourth quarters.
Moreover, the company grappled with rising operational costs, attributed to increased utility tariffs and financial expenses, which further strained its performance. In response, NRL operated at reduced throughput to mitigate the impact of market volatility and preserve capital.
Despite these adversities, the NRL board, including its Audit and Human Resource and Remuneration Committees, focused on enhancing corporate governance and operational efficiencies. The resignation of Mr. Jamil A. Khan as Chief Executive Officer on June 13, 2024, marked a significant transition, with Mr. Shahid Waheed Khwaja assuming the role on July 26, 2024. Mr. Khwaja, with over four decades at NRL, is expected to steer the company towards recovery and sustainable operations.
In his statement, the Chairman expressed gratitude towards the outgoing CEO for his contributions and welcomed the new leadership, emphasizing the board’s commitment to overcoming current challenges and capitalizing on future opportunities. The support from stakeholders was acknowledged as vital for the company’s path forward in these turbulent times.