KARACHI: The net profit of Cnergyico Pk Limited clocked-in at Rs4.7 billion, or Rs0.90/share for the financial year 2022, compared with Rs3.5 billion, or Rs0.67/share in the fiscal year 2021.
The company earned the net revenues of Rs170 billion during the year ended June 30, up from Rs142.1 billion in the fiscal year 2021.
The operating profit of the company increased more than Rs2.5 billion, before finance costs and taxation, during the year under review.
Cnergyico successfully capitalised on the surge in crack spreads in the aftermath of the Russia-Ukraine conflict which helped push the company’s gross profits to Rs5.9 billion in the fourth quarter of fiscal year 2022, up from an already strong gross profit of Rs3.3 billion reported for the third quarter.
The marketing business benefited from the upward revision in the margin for high speed diesel (HSD) and motor spirit (MS) from Rs2.97/litre to Rs3.68/litre from December, 2021.
Cnergyico’s Chief Executive Officer Amir Abbassciy said that given woefully low working capital facilities available to the company, it was able to clock approximately 23 per cent of its refineries capacity.
“Going forward, this area remains of key importance for addressal, especially since the facilities are denominated in rupee and the upsurge in the dollar has further impacted these severely,” he added.
For now it appears that this trend will continue for the foreseeable future, coupled with another rally in the crude oil prices which cannot be ruled out, he said. “Additionally our focus remains on cost rationalisation across the various business segments we operate in, this for us is an on-going task at hand.”
The growth in the revenues and net profit of the company came in spite of the macroeconomic challenges. The local currency’s depreciation, as well as the unusually large difference in rates quoted by banks and the weighted average rate announced by the central bank, caused severe exchange losses to the oil sector.
Additionally, problems associated with getting letters of credit (LCs) confirmed from the international banks posed a serious threat to the oil supply chain. An increase in inflation and higher lending rates also pushed financing and other costs higher.
Cnergyico continues to work diligently to upgrade and modernise its refineries to meet the growing demand for high-quality and environmentally friendly fuels while reducing furnace oil output.
The company is looking forward to the introduction of the oil refinery policy and deregulation of fuel prices to improve the speed of innovation and growth in the oil sector.
