Pakistan Refinery Limited’s financial results for the half year ended December 31, 2011

Karachi: We have to inform you that the Board of Directors of PRL in their meeting held on February 15, 2012 at 9:30 am at Shell House, Karachi has recommended a “Nil” dividend.

The condensed interim profit and loss account of the Company for the half year ended December 31, 2011 is given as follows:

 

For the quarter

For the half year

October-

October-

July-

July-

December

December

December

December

2011

2010

2011

2010

(Rupees in thousand)

Sales 39,905,509 29,989,013 74,001,400 56,442,849
Less Sales tax, excise duty and
development levy (6,376,148) (5,460,412) (11,327,472) (10,850,888)
———- ———- ———- ———-
33,529,361 24,528,601 62,673,928 45,591,961
Cost of sales (33,272,672) (23,722,705) (61,850,069) (44,447,731)
———- ———- ———- ———-
Gross profit 256,689 805,896 823,859 1,144,230
Distribution cost (43,255) (34,262) (82,392) (61,887)
Administrative expenses (48,918) (41,454) (93,739) (76,571)
Other operating expenses 12,577 (65,096) (2,045) (78,657)
Other income 211,783 218,242 228,907 244,251
———- ———- ———- ———-
Operating profit 388,876 883,326 874,590 1,171,366
Share of income of associate 3,573 1,705 7,484 4,529
Finance cost (567,820) (15,992) (860,153) (125,899)
———- ———- ———- ———-
(Loss)/Profit before taxation (175,371) 869,039 21,921 1,049,996
Taxation-current (185,456) (38,940) (349,866) (249,781)
– prior years 73,226 73,226
– deferred (3,812) 1,808 (12,286) 7,680
———- ———- ———- ———-
(189,268) 36,094 (362,152) (168,875)
———- ———- ———- ———-
(Loss)/ Profit after taxation (364,639) 905,133 (340,231) 881,121
———- ———- ———- ———-
(Loss)/ Earnings per share (Rs 10.42) Rs 25.86 (Rs 9.72) Rs 25.17

 

Extracts from the Notes to the Condensed Interim Financial Information for the Half Year Ended December 31, 2011

Note 1.5- Basis of Preparation

As at December 31, 2011 the Company has accumulated losses of Rs. 1.31 billion and its current liabilities exceed its current assets by Rs. 2.28 billion. These conditions indicate the existence of material uncertainly that may cost doubt on the Company’s ability to continue as a going concern and realize its assets and discharge its liabilities in the normal course of business. During the half year ended December 31, 2011 the Company has earned gross profit of Rs 823.9 million and profit before tax of Rs 21.92 million. Further the pricing mechanism of certain products, effective from June 1, 2011 has been revised by the Government of Pakistan (GoP) which has positively contributed in the current period and is expected to have a further favourable impact on the Company’s profitability and liquidity in the future. Moreover the Company intends to undertake shortly the mandatory up-gradation projects as required by the GoP which will result in increased production of better margin products and thereby by overall profitability will increase, Based on the above facts and the projected profitability of operations and cash flows the Company expects to be able to realize its assets and discharge its liabilities in the normal course of business. Accordingly, this condensed interim financial is prepared on a going concern basis.

Extracts From the Auditor’s Report to the Members on Review of Interim Financial Information

“Conclusion

Based on our review nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information as of and for the half year ended December 31, 2011 is not prepared, in all material respects, in accordance with the approved accounting standards as applicable in Pakistan for interim financial reporting.

Emphasis of Matter

Without qualifying our conclusion, we draw attention to note 1.5 to the condensed interim financial information. As stated in the note, as at December 31, 2011 the Company has accumulated loss of Rs 1.31 billion and its current liabilities exceed its current assets by Rs. 2.28 billion. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company’s ability to a continue as a going concern.”

For more information, Contact:
Pakistan Refinery Limited
Korangi Creek Road,
P. O. Box 4612, Karachi- 75190.
Ph: 35122131-9
Fax: 92-21-35060145,
Website: www.prl.cam.pk

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