Byco Posts a 76% Drop in Profits

Byco Petroleum Limited posted a profit of just Rs240 million in the quarter ended September 31, 2018, showing a negative growth of 76.34 percent, as compared to a profit of Rs1.01 billion recorded in the same quarter of the previous year. Earnings per share of the company decreased to Rs0.05 from Rs0.19. The robust erosion in profitability is primarily driven by volatility in crude oil prices, depreciation of Rupee against Dollar and high financial charges. This noticeable decline came as a consequence of the increase in the cost of sales. The company’s cost of sales surged by 77.74 percent to Rs52.22 billion as compared to previous Rs29.38 billion. ALSO READ Byco Petroleum Posts 130pc Growth in Profit for FY18 Net sales increased by 70.84 percent to Rs53.71 billion in the quarter compared to Rs31.44 billion in the corresponding quarter. This hefty growth is attributed to surge in POL prices and volumetric sales Finance costs increased to Rs820 million from Rs493 million, which made further damage to the earnings. Whereas other expenses saw a decline of 29 percent to Rs179 million from Rs251 million. Other income, however, increased to Rs206 million from Rs143 million. Byco’s share price decreased by 4.49 percent, or Rs0.49, to close at Rs10.42 with a turnover of 1.92 million shares on Tuesday.