Byco Petroleum’s profit spikes by 50% Year on Year

Pakistan’s largest refinery makes great strides in financial performance, despite macroeconomic challenges
Corporate results: Byco profit jumped by 50% to Rs 2.1 billion in FY17

Karachi: Byco Petroleum Pakistan Limited (BPPL) declared profit after tax of Rs.2.1 billion for the year ended June 2017, a 50% increase over the same period last year. Byco’s operating profit also registered growth of 14% in FY17 over FY16. Byco has shown stable earnings growth over the last several years. For the last 3 consecutive years the company posted operating profit of Rs. 3 billion or more.

Earlier in the year, BPPL received approval from the High Court to merge with its wholly owned subsidiary and its parent company to integrate various parts of its petroleum supply chain. BPPL’s FY17 earnings per share (EPS) of Rs. 0.26 per share in consolidated accounts compared to its FY16 EPS of Rs. 0.40 per share is a major achievement given that following the merger the number of shares have increased by 542% to 5.3 Billion shares as against 977 Million shares last year. This shows the positive trajectory of the company’s results.

Byco’s significant growth in profitability has been the result of significant efforts in the improvement of the company’s logistics and imports of products at market competitive pricing. After the merger, Byco Petroleum Pakistan Limited has become the largest oil refinery in the country with 155,000 barrels of refining capacity and is the only refinery with a dedicated oil terminal, Byco’s unique Single Point Mooring. Both of these factors have given Byco a major edge over other refineries in the country; Byco has leveraged this strategic advantage by importing refined petroleum products at its SPM Oil Terminal. in 2017 Byco announced receiving a crude vessel of over 100,000 metric tons, the largest ever to berth at any port of Pakistan. Byco has virtually no vessel waiting time and as a result, with larger sized vessels, saves hundreds of millions of rupees on freight and demurrage costs, an advantage which all other refineries and OMCs lack.