Byco Petroleum earns profit of Rs72.297mln

KARACHI: Byco Petroleum Pakistan Limited has announced net profit of Rs72.297 million for the year ended June 30, 2015.
It is the first time in the company’s history that it has announced net profits.
The company posted net sales revenue of over Rs94 billion in FY15, which is the highest-ever achieved by the company.
“Byco had been on recovery road since last year and has shown resilience and the ability to operate under unfavourable market conditions,” an official said.
Byco posted net profits of Rs72.297 million, translating into earnings per share (EPS) of Rs0.07 in FY15 as against loss of Rs5.937 billion last year.
The year 2014/15 had been extremely challenging for the entire oil sector, especially for the refineries, as the sharp decline in crude and product prices persisted throughout the year and it was very difficult for the market players to shield themselves from price losses, which hit them almost on a monthly basis.
Prices of crude oil were hovering over $100 a barrel at the start of the fiscal year, which by the end of the year nosedived to just above $50.
As a result, the entire oil sector of Pakistan (ie, the refineries, as well as oil marketing companies) had to face reduction in net sales revenue by over 20 percent.
"Byco, on the other hand, managed to increase its revenues by two percent, which shows that the company has actually been able to enhance its volume significantly,” the official said. The official said that lower inventory holding period and proactive supply chain management allowed the company to limit its inventory losses and the company posted a gross profit of Rs4.9 billion, the highest ever achieved by the company since it ventured into the refining sector. The company was also able to contain its administrative expenses, other expenses and finance costs as all of which have declined from last year.
“Selling and distribution expenses, on the other hand, have increased by 45 percent which indicates that the company has fortified its marketing arm which is also evident from continuous revenue growth,” official said. —Javed Mirza