Byco Manages a Massive Increase in Profits After a Poor FY2016-17

Byco Petroleum Limited managed to post a profit for the nine months that ended on March 31, 2018, compared to a loss recorded in the same period of the previous year. The company reported a massive increase in profit of Rs 3.41 billion for the nine months compared to a loss of Rs 128.25 million in the same period last year. Earnings per share of the company increased to Rs 0.64 as compared to a loss per share of Rs 0.02 for the nine months. The company posted a profit of Rs 1.13 billion as compared to the loss of Rs 147 million in the same quarter of the previous year after it successfully integrated its different energy businesses into one unit. At the combined current level of crude processing at both of Byco’s Oil Refining Complexes (ORC I & II), i.e. 75,000 barrels per day, the cumulative motor gasoline production has increased fivefold from 300 tons to 1,500 tons per day. It reported sales of Rs. 138.93 billion; up 70.74% for the 9FY18 from the same period last year. Furthermore, the company’s Gross Profit rose to Rs. 7.08 billion from Rs. 2.15 billion last year. The cost of sales increased to Rs 100 billion, up by 67% from Rs 60.18 billion for the nine months. Furthermore, Byco also reported a 63.16% decline in Other Income coming down to Rs. 490.90 million as compared to last year. Byco’s share at the bourse was trading at Rs 14.95, down by 0.07% in a dull trading session with a turnover of 1.04 million shares. ALSO READ Byco Adds State-of-the-Art Oil Tankers to Its Fleet Byco, back in March, also announced that it will set up two more refineries to capitalize on domestic demand for petroleum products. They have planned many additional upgrades and investments and these will be unveiled as they are rolled out. The company saw some hard times in the industry, especially the downstream refinery segment; the government’s decision to shut down furnace oil-based power plants hampered the refineries’ activity including Byco’s where they had to decrease their throughput. Despite lower throughput in the last couple of months, Byco’s financial performance continues to show outstanding improvement in 9MFY18.