Karachi: Pakistan Refinery Limited (PRL) has reported a substantial profit increase in its 64th Annual Report for the fiscal year ended June 30, 2024. The profit after taxation rose sharply to Rs. 4.06 billion, up from Rs. 1.82 billion in the previous year. According to information available from the Pakistan Stock Exchange (PSX), the company's profit boost is attributed to aggressive business strategies and a keen selection of the most feasible crude and robust operational control.
The refining industry has witnessed significant advancements due to the revised Pakistan Oil Refining Policy for Upgradation of Existing / Brownfield Refineries introduced by the Government of Pakistan in August 2023. These changes have allowed PRL to collect incremental incentives, capped at 25% for up to seven years and providing a 7.5% tariff protection on High Speed Diesel for 20 years post-commissioning. An agreement with the Oil and Gas Regulatory Authority was solidified in November 2023, ensuring PRL's eligibility for these incentives, which are being managed through a joint escrow account with OGRA.
On the developmental front, PRL is nearing completion of the Refinery Expansion and Upgrade Project (REUP), with technology licenses secured from renowned international firms such as UOP (USA), Axens (France), and others. The project is set for financial closure through a transparent qualification process, ensuring robust funding and operational planning for the future.
Additionally, PRL's commitment to Corporate Social Responsibility (CSR) has been pronounced during the fiscal year 2023-24. The company made substantial contributions to healthcare and education, supporting several organizations including Indus Hospital, Child Life Foundation, and The Citizens Foundation. These initiatives are part of a broader effort to uphold high Health, Safety, Environment, and Quality (HSEQ) standards, with the company remaining compliant with all regulatory requirements.
PRL's board and stakeholders, including the Ministry of Energy and Government of Pakistan, have played pivotal roles in supporting these advancements, ensuring the refinery's ongoing success and contribution to the national economy.