By: WE Financial Services Limited
In our today’s morning report we would discuss the performance of Hascol Petroleum Limited (HASCOL) during the 9MCY15.
Earnings grow by leaps and bounds: For the nine month of the current year (CY15) Company recorded an impressive 47% growth in its earnings at Rs 753 million when compared with Rs 512 million in the same period of the last year. During this period of per-share-earning fattens to Rs 6.24 comparing with Rs 4.24 per share earnings. 44% increase in volumetric sales in 9M and lower effective taxation were the reason cited for this growth.
Revenue slides despite higher volumetric sales: During the period-mentioned, though volumetric sales rose 44% higher to 936k tons against 652k tons, net sales slide 12% to Rs 55,345 million from Rs 62,883 million because of the lower petroleum product prices. The massive surge in sales volume driven by Petrol sales, which significantly rose 57% to 199k tons compared with 127k tons in the identical period of last year. Similarly furnace oil and High Speed Diesel sales rises by 42% & 39% YoY to 437k tons & 301k tons in 9MCY15 respectively. Gross profit up 21% to Rs 1,990 million against Rs 1,646 million posted in the same period of preceding year due to higher margin on regulated product and better volumetric sales.