Rupees in Millions
201920182017201620152014
Balance Sheet
Shareholders' Equity 119,181 110,452 102,850 91,581 82,310 78,621
Non Current Assets 32,854 24,561 23,883 68,142 65,559 58,637
Current Assets 384,225 378,001 368,560 274,174 275,749 313,514
Non-current liabilities 7,528 5,165 8,090 6,234 8,321 5,184
Current liabilities 290,371 286,945 281,504 244,501 250,676 288,346

Analysis

As of June 30, 2019, variation as compared to FY 2018 is because of the following:

- Shareholders' equity rose by 7.9% primarily due to profit retained during the year.
- Non-current assets increased by 33.8% mainly due to fair valuation of Company's investment in Pak-Arab Pipeline Company Limited on account of adoption of new standard - IFRS 9 and increase in property, plant and equipment.

- Current assets increased by 1.6% primarily due to following reasons:

  • Higher other receivables primarily due to exchange loss receivable booked on FE loans amounting to Rs. 30.2 bn.
  • Increase in stock in trade by Rs. 8 bn mainly due to higher oil prices which is partially offset by significant decline in stock levels of furnace oil.
  • Decrease in trade debts by Rs. 26 bn. is due to recoveries from power sector offset by increase in receivables from SNGPL.

- Increase in non-current liabilities by 45.8% is because of increase in liabilities relating to retirement benefit funds.
- Increase in current liabilities by 1.2% is primarily due to increase in short term borrowings which is partially offset by decline in trade and other payables on account of decline in purchases of furnace oil.

ANALYSIS OF FINANCIAL PERFORMANCE

Rupees in Millions
201920182017201620152014
Past and Current Performance
Gross Sales Revenue 1,340,978 1,312,090 1,096,543 906,177 1,114,411 1,410,096
Net Revenue 1,154,298 1,063,744 878,147 677,940 913,094 1,187,639
Gross Profit 36,017 39,636 37,136 22,525 22,921 36,824
Other Income (including share
of profit of associates)
7,512 7,911 11,751 13,411 14,314 20,059
Marketing & Administrative Expenses 12,414 11,929 11,238 10,511 10,672 10,480
Other Expenses 4,699 3,334 2,378 1,986 3,513 3,890
Operating Profit 26,209 31,870 34,662 22,826 22,670 41,972
Finance Cost 8,939 5,123 5,923 7,150 11,017 9,544
Profit before Tax 17,477 27,160 29,347 16,289 12,034 32,969
Profit after Tax 10,587 15,461 18,226 10,273 6,936 21,818
Earning before Interest, taxes, depreciation
& Amortization (EBITDA)
27,544 33,357 36,322 24,464 24,050 43,567

Analysis of Performance Against Prior Year

Company's profit after tax went down by 31.5% primarily on account of following elements:

- Increase in other expenses by 40.9% due to higher exchange losses on account of significant PKR devaluation during the year.
- Increase in finance cost by 74.5% due to increase in interest rates and average borrowing levels.
- Deccrease in gross profits by 9.1% mainly on account of lower sales volume of furnace oil due to shift in energy mix by GoP and lower white oil volumes due to dip in industry sales demand.
- EBITDA went down by 17.4% mainly due to lower sales volume and higher exchange losses mainly due to significant devaluation during the year.

ANALYSIS OF VARIATION IN RESULTS REPORTED IN INTERIM REPORTS

Rupees in Millions
Q1Q2Q3Q4FY 2019
Gross Sales 331,125 330,912 288,204 389,889 1,340,130
Gross Profit 10,906 5,090 7,887 12,134 36,017
Other Income 970 1,679 942 3,714 7,305
Operating Cost (3,580) (3,951) (2,557) (7,025) (17,113)
Finance Cost (1,826) (2,030) (2,920) (2,163) (8,939)
Share of profit of associate - net of tax 120 (185) 147 125 207
Profit Before Taxation 6,590 603 3,499 6,785 17,477
Taxation (2,409) (535) (1,823) (2,123) (6,890)
Profit After Taxation 4,181 68 1,676 4,662 10,587

Gross Sales

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

Gross Profit

It remianed low in 2nd and 3rd quarter primarily due to lower sales volume and decline in sales prices resulting in inventory losses. However, gross profit grew in 1st and 4th quarter due to inventory gains and higher sales volume.

Other income

Other income was higher in 2nd 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 significant rupee devaluation.

Finance Cost

Finance Cost continued to rise during first three quarters mainly due to increase in interest rates however, it went down in 4th quarter due to major recovery from power sector in March 2019.

Summary of Cash Flow Statement

Rupees in Millions
201920182017201620152014
Cash & Cash Equivalents at the
beginning of the year
(7,925) (41,502) (30,274) (39,584) 9,119 3,523
Net Cash (outflow) / inflow from
operating activities
(9,232) 2,580 (27,965) (994) (29,574) (62,367)
Net Cash (outflow) / inflow from
investing activities
(2,534) 45,226 3,925 4,098 3,489 4,281
Net Cash inflow / (outflow) from
financing activities
3,223 (14,229) 12,812 6,206 (22,619) 63,683
(8,543) 33,577 (11,228) 9,310 (48,704) 5,597
Cash & Cash Equivalents at the end of the year (16,468) (7,925) (41,502) (30,274) (39,584) 9,120

Analysis

The variation in cash flows as compared to FY 2018 is due to the following:

Operating Activities

In FY 2019 Cash flow from Operativing activities is negative as compared to positive cash flow in last year. The cash flows have decreased in FY 2019 primarily due to decrease in trade and other payables in FY 2019 whereas trade and other payable increased in FY 2018.

Investing Activities

Cash flow from investing activities is negative as compared to positive cash flows in last year. The cash flow were positive in FY 2018 primarily due to Maturity of PIBs in FY 2018 resulting in cash flow generation.

Financing Activities

Cash flow from financing activities is positive as compared to negative cash flows in last year. The cash flow are positive in FY 19 primarily due to additional borrowings obtained during the year.