PRL Achieves Record Profit in Fiscal Year 2023-24

ISLAMABAD: Pakistan Refinery Limited (PRL) has concluded the fiscal year 2023-24 with exceptional financial and operational performance, marking one of the most successful periods in the company’s history.

This year has been transformative for PRL, underscored by a remarkable increase in profitability, record-breaking production levels, and strategic advancements that have positioned the company for sustained growth.

The Refinery Expansion and Upgrade Project (REUP) is central to these achievements, a cornerstone of PRL’s long-term strategy to enhance capacity and produce cleaner, high-quality fuels. The company’s unwavering commitment to operational excellence, coupled with a forward-thinking approach to market dynamics, has driven these accomplishments and reinforced PRL’s leadership in the energy sector.

The fiscal year 2023-24 has been particularly notable for PRL, marked by a substantial increase in profitability, which reflects the company’s strategic initiatives, effective crude selection, and improved inventory management.

PRL reported a profit after taxation of PKR 4.06 billion, a significant rise from PKR 1.82 billion in the previous fiscal year, underscoring the company’s sound operational strategies and its commitment to delivering value to its stakeholders.

This achievement is especially impressive considering the significant REUP FEED expenses of Rs. 7.18 billion incurred during the year. The company’s earnings per share also saw a remarkable surge, increasing to PKR 6.45 from PKR 2.90 in the prior year. This growth in earnings per share underscores PRL’s focus on maximizing shareholder value, further emphasized by the Board of Directors’ recommendation of a final cash dividend of PKR 2 per share for the year ending June 30, 2024.

Throughout the year, PRL achieved several key operational milestones that have further solidified its standing in the industry. The company recorded unprecedented production levels of High-Speed Diesel (HSD) and Motor Spirit (MS).

HSD production reached 660,180 MTdespite a 38-day planned turnaround with an average daily production stand at 2,013 MT, the highest ever recorded. MS-92 production also reached an all-time high with an annual production of 265,710 MT and a daily production rate of 810 MT. Additionally, PRL produced 16,005 MT of MS-95, including 1,940 MT of Euro V-compliant fuel.

PRL’s strategic initiatives in crude oil procurement have significantly bolstered its financial performance.

The company procured and processed Russian crude, which proved to be commercially, logistically, and technically viable and opened additional crude sourcing avenues. Notably, PRL is the only refinery to have executed the Upgrade and Escrow Account Agreements under the Refining Policy within the stipulated deadline, with Rs. 4.2 billionalready deposited in the Escrow Account by June 2024.

Looking forward, PRL is well-positioned to maintain its growth trajectory, with the successful completion of the REUP and other strategic initiatives on the horizon.

The company is poised to enhance its production capabilities and meet evolving market demands, all while upholding the highest standards of operational excellence and corporate responsibility.