Rupees in Millions (unless noted)
201820172016201520142013
Balance Sheet
Shareholders' Equity 110,452 102,850 91,581 82,310 78,621 60,643
Non Current Assets 24,459 22,883 68,142 65,559 58,637 57,593
Current Assets 378,104 368,560 274,174 275,749 313,514 224,356
Non-current liabilities 5,165 8,090 6,234 8,321 5,184 4,271
Current liabilities 286,945 281,504 244,501 250,676 288,346 217,035

ANALYSIS OF FINANCIAL PERFORMANCE

Rupees in Millions
201820172016201520142013
Profit & Loss Account
Gross Sales Revenue 1,305,246 1,096,543 906,177 1,114,411 1,410,096 1,295,783
Net Revenue 1,056,901 878,147 677,940 913,094 1,187,639 1,100,122
Gross Profit 39,636 37,136 22,525 22,921 36,824 34,161
Other Income (including share of
associates' profits)
7,911 11,750 13,411 14,314 20,059 6,510
Marketing & Administrative Expenses 11,929 11,238 10,511 10,672 10,480 10,207
Other Expenses 3,334 2,378 1,986 3,513 3,890 3,664
Operating Profit 31,870 34,662 22,826 22,670 41,972 26,330
Finance Cost 5,123 5,923 7,150 11,017 9,544 7,591
Profit before Tax 27,160 29,347 16,289 12,033 32,969 19,210
Profit after Tax 15,461 18,226 10,273 6,936 21,818 12,638
Earning before Interest,
taxes, depreciation & Amortization
(EBITDA)
33,357 36,322 24,464 24,050 43,567 27,961

Analysis of Performance Against Prior Year

Company's profit after tax went down by 15.2% primarily on account of following elements:

- One time reversal of deferred tax asset due to decline in future corporate tax rates to 25% by FY 2023 (1% in each tax year).
- Decrease in other income by 32.7% mainly because of maturity of PIBs in July 2017 resulting in lower interest income.
- Increase in other expenses by 40.2% due to higher exchange losses on account of significant PKR devaluation during the year.

The above mentioned decrease was partially offset by increase in follwing elements:

- Increase in gross profits by 6.7% despite major decline in furnace oil sales mainly due to increase in margins of MOGAS & Jet Fuel. Moreover, higher margins were also earned on Furnace Oil and LNG due to increase in international prices.
- Decline in finance cost by 13.5% due to decline in average borrowing levels and effective treasury management.

ANALYSIS OF VARIATION IN RESULTS REPORTED IN INTERIM REPORTS

Rupees in Millions (unless noted)
Q1Q2Q3Q4FY 2018
Gross Sales 324,756 324,545 276,264 379,681 1,305,246
Gross Profit 9,190 9,540 10,182 10,724 39,636
Other Income 2,213 756 2,112 2,416 7,497
Operating Cost (3,385) (3,665) (3,089) (5,124) (15,263)
Finance Cost (756) (1,023) (1,907) (1,437) (5,123)
Share of profit of associate - net of tax 158 53 56 146 413
Profit Before Taxation 7,420 5,661 7,354 6,725 27,160
Taxation (2,390) (2,168) (2,651) (4,490) (11,699)
Profit After Taxation 5,030 3,493 4,703 2,235 15,461

Gross Sales

Gross sales fell significantly in 3rd quarter primarily due to decline in upliftment of FO by power sector during the period.

Gross Profit

It remianed low in 1st and 2nd quarter primarily due to inventory losses on high speed diesel and motor gasoline. However, gross profit grew in 3rd and 4th quarter due to inventory gains on high speed diesel and furnace oil.

Other income

Other income was higher in 1st, 3rd and 4th quarter primarily due to receipt of late payment interest from power sector in these periods.

Operating Cost

Operating cost increased significantly in last quarter due to higher exchange losses in that period on account of rupee devaluation and certain provisions booked against government related claims and in respect of outsourced employees.

Finance Cost

Finance Cost went up in 3rd quarter mainly due to more proportion of local borrowing in that period and furnace oil cargo payments. Further, it was on lower side in 1st quarter primarily due to significant decline in borrowing in that period on account maturity of PIBs in July 2017.

Taxation

Significant increase in taxation in 4th quarter is due to booking of super tax charge and reversal of certain portion of deferred tax asset due to reduction in future corporate tax rates in that period. These arose due to new Finance Act announced in 4th quarter.

Summary of Cash Flow Statement with Analysis

Rupees in Millions
201820172016201520142013
Cash Flow Statement
Cash & Cash Equivalents at the
beginning of the year
(41,502) (30,274) (39,584) 9,119 3,523 (18,116)
Net cash (outflow) / inflow
from operating activities
(2,581) (27,965) (994) (29,574) (62,367) 79,444
Net cash inflow / (outflow)
from investing activities
45,226 3,925 4,098 3,489 4,281 (46,107)
Net cash inflow / (outflow)
from financing activities
(14,229) 12,812 (6,206) (22,619) 63,682 (11,698)
33,578 (11,228) 9,310 (48,704) 5,596 21,639
Cash & cash equivalents
at end of the year
(7,925) (41,502) (30,274) (39,584) 9,119 3,523

Analysis

The variation in cash flows as compared to FY 2017 is because of the following:

Operating Activities

In FY 18 Cash flow from Operativing activities is positive as compared to negative cash flow in last year. The cash flows have increased in FY 18 primarily due to increase in trade and other payables.

Investing Activities

Cash flow from investing activities has improved significantly in FY 18 vs last year due to Maturity of PIBs in July 2017.

Financing Activities

Cash flow from Financing activities deteriorated consequential to repayment of Short term borrowings. The Company was able to repay such borrowings as it had available funds due to maturity of PIBs during the year.