KARACHI - Byco Petroleum Pakistan Limited Saturday announced its financial results for the fiscal year 2014 – 2015. The company posted net sales revenue of over Rs 94 billion which is the highest ever achieved by the company. Byco had been on recovery road since last year and has shown resilience against and the ability to operate under unfavourable market conditions.

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, stated the company in a statement.

Prices of crude oil were hovering over US$ 100 a barrel at the start of the fiscal year, which by the end of the year nosedived to just above US$ 50. As a result, the entire oil sector of Pakistan (i.e. the refineries as well as oil marketing companies) had to face reduction in net sales revenue by over 20%.Byco, on the other hand, managed to increase its revenues by 2%, which shows that the company has actually been able to enhance its volume significantly.

A 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 Rs 4.9 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% which indicates that the company has fortified its marketing arm which is also evident from continuous revenue growth.

This is the first year; the company has posted operating profit of Rs. 2.9 billion and has declared a net profit of Rs. 72 million.