Karachi: National Refinery Limited reported a substantial loss in its first quarter of the fiscal year 2024, as detailed in its latest condensed interim financial statements for the quarter ended September 30, 2024. The company experienced a significant downturn, posting a loss of Rs. 7.24 billion, a stark contrast to the profit of Rs. 3.20 billion recorded in the same period last year.

The refinery's financial performance was primarily hampered by a considerable increase in cost of sales, which rose to Rs. 73.27 billion from Rs. 66.47 billion year-over-year, despite a slight increase in net revenue from contracts with customers to Rs. 66.98 billion. According to information available from the Pakistan Stock Exchange (PSX), these figures reflect the challenges faced by the refining sector, including volatile global oil prices and fluctuating demand.

Administrative expenses and other operating costs also contributed to the financial strain, with administrative expenses slightly up year-over-year. The company's operating loss deepened dramatically, from a loss of Rs. 6.65 billion in the previous year to Rs. 6.69 billion this quarter.

The comprehensive loss after taxation was reported at Rs. 7.24 billion, further impacted by the absence of any significant other comprehensive income during the quarter. This performance marks a critical point for the refinery, necessitating strategic adjustments to navigate the ongoing economic pressures and market dynamics.

National Refinery has communicated these results to its shareholders and the TRE Certificate Holders of the Exchange, emphasizing transparency and adherence to regulatory standards in its reporting practices.