Hascol Petroleum first quarter profit declines by 8%YoY

Hascol Petroleum (HASCOL) has announced financial results for 1QCY19. The Company has posted profit after tax of Rs675 million (EPS: Rs3.39), down 8%YoY. However, this a significant improvement keeping in view that the Company had posted loss for 4QCY18.

Profit has been termed higher than expected likely on account of inventory gains estimated around one billion rupees, which was on the back of gains made on furnace oil sales. However, analysts await clarity from management in this regard.

Finance cost for the quarter was up 35% and 277% on QoQ/YoY after Company’s debt increased with debt-to-equity rising to at 195% at end December 2018.

The Company had posted colossal exchange loss of Rs1.4 billion for 4QCY18, which declined to a moderate level of Rs180 million as rupee depreciated by one percent during 1QCY19 as against 12 percent for 4QCY18.

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