اردو

Financials

Financial Highlights

    • Analysis of Financial Position

      Analysis of Financial Position

      For the year ended June 30, 2023

      Rupees In Millions
      2023 2022 2021 2020 2019 2018
      Shareholders' equity 216,560 215,649 139,978 113,061 119,181 110,452
      Non-current assets 60,047 53,624 51,297 49,611 32,854 24,561
      Current assets 923,349 845,830 327,962 293,261 384,225 378,001
      Non-current liabilities 18,491 16,548 12,239 12,461 7,528 5,165
      Current liabilities 748,345 667,258 227,043 217,350 290,371 286,945

      Analysis of Financial Position

      As of June 30, 2023, variation as compared to June 30, 2022 is as follows:

      • Shareholders' equity increased by 0.42% primarily due to profit retained during the year.

      • Non-current assets increased by 11.98% mainly due to additions in property, plant & equipment and increase in deferred tax asset due to imposition of super tax.

      • Current assets increased by 9.16% primarily due to increase in trade debts on account of increase in receivables from SNGPL.

      • Increase in non-current liabilities by 11.74 % mainly due to increase in retirement & other service benefits and lease liability.

      • Increase in current liabilities by 12.15% mainly due to increase in short-term borrowings to finance working capital needs.

    • Analysis of Financial Performance

      Analysis of Financial Performance

      For the year ended June 30, 2023

      Rupees In Millions
      2023 2022 2021 2020 2019 2018
      Gross sales 3,605,464 2,697,061 1,424,249 1,302,037 1,340,978 1,312,090
      Net sales 3,391,112 2,451,581 1,204,247 1,108,358 1,154,298 1,063,744
      Gross profit 74,847 160,995 54,609 12,227 36,017 39,636
      Other income (including share of profit of associates) 12,648 25,507 19,408 10,755 7,559 7,911
      Marketing & Administrative Expenses 20,478 16,812 14,890 14,638 12,414 11,929
      Other expenses 2,317 17,114 4,829 51 4,699 3,334
      Operating profit 65,560 151,882 53,717 7,749 26,257 31,870
      Finance cost 40,335 4,721 10,242 13,427 8,987 5,123
      Profit / (Loss) before tax 24,366 147,855 44,056 (5,134) 17,477 27,160
      Profit / (Loss) after tax 5,662 86,223 29,139 (6,466) 10,587 15,461
      Earning before Interest, Taxes, Depreciation & Amortization (EBITDA) 67,601 154,819 56,053 9,907 27,591 33,357

      Analysis

      'In FY 2023, Company has reported profit after tax of Rs. 5.66 bn. primarily on account of following elements:

      • Decrease in gross profit by 53.51% primarily due to unfavourable price regime and reduction in overall industry volumes.

      • Decrease in other income by 50.41% due to lesser receipt of late payment interest income from power sector in the current year.

      • Increase in finance cost substantially as compared to last year is mainly due to higher average policy rate of State Bank of Pakistan (SBP) in FY 2023 and increased borrowings to finance the receivables related to circular debt.

    • Analysis of Variation In Results Reported In Interim Reports

      Analysis of Variation In Results Reported In Interim Reports

      For the year ended June 30, 2023

      Rupees In Millions
      Q1 Q2 Q3 Q4 FY 2023
      Gross sales 929,559 887,329 861,668 926,908 3,605,464
      Gross profit 6,720 4,841 46,665 16,621 74,847
      Other income 6,449 3,158 1,938 1,962 13,507
      Operating cost (4,598) (4,458) (7,692) (6,046) (22,794)
      Finance cost (4,796) (7,665) (12,682) (15,192) (40,335)
      Share of profit / (loss) of associate - net of tax 232 242 (1,486) 153 (859)
      Profit / (loss) before taxation 4,007 (3,881) 26,742 (2,502) 24,366
      Taxation (2,810) (678) (13,096) (2,120) (18,704)
      Profit / (Loss) after taxation 1,197 (4,559) 13,646 (4,622) 5,662

      • Gross Sales

        Gross sales were highest in 1st quarter due to high sales volume whereas it was second highest in last quarter due to higher sales prices on account of rise in international oil prices.

      • Gross Profit

        Gross profit remained fluctuating quarter on quarter due to fluctuating international oil prices and sales demand in FY 2023.

      • Other income

        Other income was higher in 1st and 2nd quarter due to receipt of late payment interest income from power sector in those periods.

      • Finance Cost

        Finance cost continued to rise throughout the quarters mainly due to increase in prevailing interest rates on accont of increase in discount rate by SBP and increase in borrowings to finance the receivables related to circular debt.

    • Summary of Cash Flow Statement

      Summary of Cash Flow Statement

      For the year ended June 30, 2023

      Rupees In Millions
      2023 2022 2021 2020 2019 2018
      Cash and cash equivalents at the beginning of the year (12,061) (5,917) (881) (16,468) (7,925) (41,502)
      Net Cash inflow / (outflow) from operating activities (241,282) (80,974) 17,766 48,260 (9,232) 2,580
      Net Cash (outflow) / inflow from investing activities (4,353) (2,090) (5,294) (4,843) (2,534) 45,226
      Net Cash (outflow) / inflow from financing activities 259,382 101,042 (17,507) (27,830) 3,223 (14,229)
      13,748 17,977 (5,036) 15,587 (8,543) 33,577
      Cash and cash equivalents at the end of the year 25,808 12,061 (5,917) (881) (16,468) (7,925)

      • Analysis

        The variation in cash flows as compared to FY 2022 is due to the following:

      • Operating Activities

        In FY 2023, cash flow from operating activities remained negative. The cash flows have further decreased in FY 2023 primarily due to decrease in trade and other payables and a significant surge in finance costs paid.

      • Investing Activities

        In FY 2023, net cash outflow from investing activities is due to additions in property, plant and equipment.

      • Financing Activities

        In FY 2023, cash flow from financing activities is positive primarily due to short term borrowings taken during the year to meet working capital requirements.

    • Profitability Ratios
      2023 2022 2021 2020 2019 2018
      Gross profit ratio % 2.21 6.57 4.53 1.10 3.12 3.73
      Net Profit / (Loss) ratio % 0.17 3.52 2.42 (0.58) 0.92 1.45
      EBITDA margin to sales % 1.99 6.32 4.65 0.89 2.39 3.14
      Return on shareholders' equity % 2.61 39.98 20.82 (5.72) 8.88 14.00
      Return on capital employed % 1.12 30.39 15.52 (3.19) 4.97 7.13
      Operating leverage ratio % (150.28) 174.74 6,411.86 1,725.19 (211.76) (40.07)
      Shareholders' Funds % 22.02 23.98 36.91 32.97 28.58 27.44
      Total Shareholder Return % (31.27) (19.33) 47.49 (6.79) (32.38) 9.51

      Analysis

      The variation in ratios as compared to FY 2022 is because of the following:

      • Gross profit and EBITDA ratios have decreased as compared to last year due to unfavourable price regime and reduction in overall industry's sales volumes.

      • Net profit ratio went down primarily due to increase in net sales by 38.32% and decline in net profit by 93.43%.

      • Decline in return on shareholders' equity and capital employed is mainly due to decline in net profit by 93.43%.

      • Negative operating leverage is due to decline of 57.6% in EBIT against an increase of 38.32% in net sales.

    • Capital Structure Ratios
      2023 2022 2021 2020 2019 2018
      Interest cover ratio (x) 1.60 32.32 5.30 0.62 2.94 6.30
      Net Assets per Share Rs. 461.28 459.34 298.16 240.83 253.86 235.27
      Financial leverage ratio (x) 196.00 73.00 41.00 59.00 90.00 81.00
      Weighted average cost of debt % 12.97 3.01 3.69 13.19 18.44 4.10
      Economic value addition Rs. In Mn (26,811) 27,261 10,292 (32,114) (14,962) (8,075)

      Note: D/E ratio has not been calculated as the Company has no long term debt.

      Analysis

      The variation in ratios as compared to FY 2022 is because of the following:

      • Interest cover has decreased due to significant surge in finance cost mainly due to increase in interest rates and borrowings to finance the receivables related to circular debt.

      • Financial leverage has increased during the year mainly on account of greater percentage increase in short-term borrowings on account of working capital in relation to shareholders’ equity. During the year, short-term borrowing has increased by Rs. 267 bn. whereas, shareholder's equity has increased by Rs. 911 mn.

      • Weighted average cost of debt has increased mainly due to higher average policy rate of SBP in FY 2023.

    • Liquidity Ratios

      Liquidity Ratios

      For the year ended June 30, 2023

      Rupees In Millions
      2023 2022 2021 2020 2019 2018
      Cash to current liabilities (x) 0.03 0.02 (0.03) (0.004) (0.06) (0.03)
      Cash Flow From Operating Activity (x) (0.32) (0.12) 0.08 0.21 (0.04) 0.01
      Cash Flow from Operations to Sales (x) (0.07) (0.03) 0.01 0.04 (0.01) 0.00
      Cash Flow to Capital Expenditure (x) (47.40) (24.29) 3.19 16.04 4.66 1.78
      Cashflow Coverage Ratio (x) (0.57) (0.52) 0.32 0.73 (5.31) 0.03
      Current Ratio (x) 1.23 1.27 1.44 1.35 1.32 1.32
      Quick Ratio (x) 0.84 0.76 1.10 1.09 1.01 1.03
      Free Cash Flows to the Firm PKR. In Mn. (137,773) 23,677 42,886 66,161 (3,130) 8,063
      Free Cash Flows to the Equity Holders PKR. In Mn. 78,634 126,017 23,645 27,347 386 (2,464)

      Analysis

      The variation in ratios as compared to FY 2022 is because of the following:

      • Cash to current liabilities ratio has increased due to increase in cash and cash equivalents by 114% during the year whereas the current liabilities have increased by 12%.

      • Both ratios of cash flow from operating activity and cash flow from operations to sales have remained negative due to negative cash flow from operations during the year. The cash flow from operations is negative in FY 2023 primarily due to increase in trade debts and other receivables.

      • Current ratio has reduced slightly due to greater percentage increase in current liabilities than current assets. Current liabilities have increased mainly due to increase in short-term borrowings.

      • Quick ratio has also improved slightly due to greater percentage increase in quick assets than increase in current liabilities.

      • Significant decline in cash flows to the company is primarily due to negative working capital on account of increase in trade debts and other receivables.

      • Decrease in cash flow to equity holders is primarily due to increase in trade debts and other receivables.

    • Investment Ratios
      2023 2022 2021 2020 2019 2018
      Earning / (Loss) per share (basic & diluted) Rs 12.06 183.66 62.07 (13.77) 22.55 32.93
      Market value per share (Year End) Rs 111.01 171.84 224.25 158.20 169.63 318.31
      Highest price Rs 192.82 231.30 259.32 216.90 352.13 466.59
      Lowest price Rs 99.03 155.63 159.35 114.00 151.96 265.17
      Break-up value Rs 461.28 459.34 298.16 240.83 253.86 235.27
      Price earning ratio (P/E) (x) 9.20 0.94 3.61 (11.49) 7.52 9.67
      Price to book Ratio (x) 0.05 0.09 0.28 0.22 0.19 0.37
      Dividend per share PKR 7.50 10.00 15.00 - 10.00 15.00
      Bonus share % - - - - 20.00 20.00
      Dividend payout (including bonus) % 62.19 5.44 24.17 - 44.35 45.55
      Dividend yield (including bonus) % 6.76 5.82 6.69 - 7.07 5.34
      Dividend cover ratio (including bonus) (x) 1.61 18.37 4.14 - 2.25 2.79

      Analysis

      The variation in ratios as compared to FY 2022 is because of the following:

      • Price earning ratio has increased primarily due to more proportionate decrease in EPS as compared to market value per share.

      • Break-up value of the company has improved due to the profit retained during the year.

      • Decline in price to book ratio is primarily due to decline in market value per share by 35%.

      • Dividend payout has increased primarily due to decline in EPS by 93% as compared to FY 2022.

      • Dividend cover ratio has decreased primarily due to decrease in EPS by 93% as compared to FY 2022.

    • Activity/Turnover Ratios
      2023 2022 2021 2020 2019 2018
      Inventory turnover ratio (x) 10.46 10.89 16.88 14.93 13.06 13.84
      No. of days in inventory No 35.00 34.00 22.00 25.00 28.00 26.00
      Debtor turnover ratio (x) 7.78 8.28 6.83 6.25 5.77 5.73
      No. of days in receivables No. 47.00 45.00 54.00 58.00 63.00 64.00
      Creditor turnover ratio (x) 12.36 11.28 16.51 12.51 10.15 10.75
      No. of days in creditors No. 30.00 33.00 23.00 30.00 36.00 34.00
      Total asset turnover ratio (x) 3.83 4.22 3.94 3.43 3.27 3.30
      Fixed asset turnover ratio (x) 207.09 178.31 116.81 142.18 172.07 183.24
      Operating cycle No. 52.00 46.00 53.00 53.00 55.00 56.00

      Analysis

      The variation in ratios as compared to FY 2022 is because of the following:

      • Inventory turnover has decreased on account of lower than expected volumes due to negative financial environment.

      • Debtors turnover has declined due to more proportionate increase in trade debts as compared to sales. During the year, gross revenue increased by 34% whereas average debtors have increased by 42%.

      • Creditors turnover has improved primarily due to prompt payments made to suppliers for purchases on credit.

      • Operating cycle has decreased primarily due to decrease in creditor days and increase in debtor days.

      • Total asset turnover has declined due to more proportionate increase in average total assets i.e. 47% than sales i.e. 34%.

    • Employee Productivity Ratio
      2023 2022 2021 2020 2019 2018
      *Production per Employee Metric Ton 461 484 416 411 412 467
      *Revenue per Employee PKR in Mn. 1,526 1,085 503 441 446 374
      Staff Turnover Ratio (x) 0.05 0.06 0.06 0.05 0.04 0.05

      Analysis

      The variation in ratios as compared to FY 2022 is because of the following:

      • Production per employee has decreased mainly due to decrease in the production of lube manufacturing plant of the company by 2%.

      • Revenue per employee has increased significantly on account of greater percentage increase in net sales than in total number of employees. Sales has increased mainly due to increase in LNG volumes and average prices of petroleum products during FY 2023.

    • Non Financial Ratios
      2023 2022 2021 2020 2019 2018
      Plant Availability Ratio % 1.40 1.23 1.16 1.16 1.14 1.08
      *Customer Satisfaction Index % 62 74 70 70 71 66

      Analysis

      The variation in ratios as compared to FY 2022 is because of the following:

      • Plant availability ratio has increased due to a 40% increase in actual production hours compared to planned production.

      • Customer satisfaction index is monitored based on customer responses.

    • Others
      2023 2022 2021 2020 2019 2018
      Spares Inventory to Assets Cost Ratio % 0.1 0.1 0.2 0.2 0.1 0.1
      Maintenance Cost to Operating Expense Ratio % 8.1 4.7 7.3 10.6 6.1 6.3

      Analysis

      The variation in ratios as compared to FY 2022 is because of the following:

      • Spare inventory to asset cost has remained stable.

      • Maintenance cost to operating expenses has increased due to decrease in operating cost of the company by 32% mainly due to decrease in company's contribution towards Workers' Profit Participation Fund and Workers' Welfare Fund on account of decrease in profits.

  • Latest Announced Dividend Payment

    Books Closure Dates
    Rate From To
    Rs. 7.5/- per share October 19, 2023 October 26, 2023

    Dividends approved by BOM, are paid to shareholders on the basis of entitlement determined on book closure date. Shares must be purchased and duly registered before the book closure date to be entitled to receive the dividend.

    Dividends per share declared during last five years:

    Year Total Dividend Declared
    2023 75%
    2022 100%
    2021 150%
    2020 -
    2019 120%

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