Pakistan Refinery : Transmission of Quarterly Report for the Quarter ended September 30, 2023

FUTURE IN THE MAKING

WITH CUT TING EDGE TECHNOLOGY

PAKISTAN REFINERY LIMITED

F I R S T Q U A R T E R R E P O R T

S E P T E M B E R 3 0 , 2 0 2 3

CONTENTS

VISION & MISSION	01
COMPANY PROFILE / INFORMATION	03
BOARD OF DIRECTORS	05
DIRECTORS' REVIEW	06
CONDENSED INTERIM STATEMENT
OF FINANCIAL POSITION	07
CONDENSED INTERIM STATEMENT OF PROFIT
OR LOSS AND OTHER COMPREHENSIVE INCOME	08
CONDENSED INTERIM STATEMENT OF
CHANGES IN EQUITY - (UNAUDITED)	09
CONDENSED INTERIM STATEMENT OF
CASH FLOWS - (UNAUDITED)	10
NOTES TO AND FORMING PART OF THE FINANCIAL
STATEMENTS - (UNAUDITED)	11

VISION

The Refinery of the first choice for all stakeholders.

MISSION

Producing top quality and environmentally sustainable products through safe operations, state-of-the-art technology and premium human resources.

VISION & MISSION

FOLLOWING THE DREAM

COMPANY

INFORMATION

Deputy Managing Director (Finance & IT) / CFO	Bankers
Imran Ahmad Mirza	Askari Bank Limited
	Bank Alfalah Limited
Company Secretary	Bank AL-Habib Limited
Shehrzad Aminullah	Bank of China Limited-Pakistan Operations
	Faysal Bank Limited
Auditors & Tax Advisors	Habib Metropolitan Bank Limited
KPMG - Taseer Hadi & Co.	Habib Bank Limited
Chartered Accountants	JS Bank Limited
	MCB Bank Limited
Legal Advisor	MCB Islamic Bank Limited
Orr Dignam & Co.	Meezan Bank Limited
	National Bank of Pakistan
Registrar & Share Registration Office	Soneri Bank Limited
FAMCO Associates (Private) Limited.	Standard Chartered Bank (Pakistan) Limited
8-F, near Hotel Faran, Nursery, Block-6, P.E.C.H.S.,	The Bank of Punjab Limited
Shahra-e-Faisal, Karachi.	United Bank Limited
	Registered Office
	P.O. Box 4612, Korangi Creek Road, Karachi-75190.
	Tel: [phone]
	Fax: [phone]
	[e-mail]
	www.prl.com.pk

COMPANY PROFILE

PRL is a hydro-skimming refinery incorporated in Pakistan as a public limited company in May 1960. PRL is engaged in the production and sale of petroleum products. PRL operates as a subsidiary of Pakistan State Oil Company Limited (PSO), which is the largest oil marketing company in Pakistan. PRL's shares are publicly traded on the Pakistan Stock Exchange Limited.

The refinery is strategically located in Karachi, with a designed throughput capacity of 50,000 barrels per day. The major units in refinery complex are Crude Distillation Unit, Hydrotreating Unit, Platformer Unit, and Isomerization Unit.

BOARD OF DIRECTORS

TARIQ KIRMANI

CHAIRMAN

ZAHID MIR

MANAGING DIRECTOR & CEO

AFTAB HUSAIN

DIRECTOR

MOHAMMAD ABDUL ALEEM

DIRECTOR

MOHSIN ALI MANGI

DIRECTOR

MOHAMMAD ZUBAIR

DIRECTOR

RUSHNA FAWAD

DIRECTOR

SYED JEHANGIR ALI SHAH

DIRECTOR

SYED MUHAMMAD TAHA

DIRECTOR

TARA UZRA DAWOOD

DIRECTOR

ZAFAR UL ISLAM USMANI

DIRECTOR

05 Doubling Capacity

DIRECTORS' REVIEW

The Board of Directors are delighted to present their review report along with the unaudited condensed interim financial information for the quarter ended September 30, 2023.

The financial year 2023-24 began with positive refining margins which complimented the Company's operational strategy and helped the Refinery generate a profit after tax of Rs 4.48 billion (September 30, 2022: Rs 1.03 billion) despite continued devaluation of the of Pak Rupee and challenges in obtaining confirmation of crude oil LCs. During the quarter, the Company achieved another milestone of the highest ever monthly production and sale of High Speed Diesel (HSD) of ~560,000 barrels and ~ 632,000 barrels respectively in September 2023.

The Company remains committed to execute the Refinery Expansion and Upgrade Project (REUP) which will double Refinery's crude processing capacity from 50,000 barrels per day to 100,000 barrels per day. Work on Front-End Engineering Design (FEED) of REUP is progressing as per the agreed timeline with targeted completion by September 2024 and as the next step license and engineering agreements have been signed with technology licensors. The search for the right potential strategic investor continues and PRL is engaged with potential investors in this regard.

The Government of Pakistan announced "Refining Policy for Upgrade of Existing / Brownfield Refineries 2023". The Policy provides incentives of 2.5% on HSD and 10% on MS in ex-refinery pricing for a period of 6 years. These incentives will support and play a pivotal role in completion of the project. Certain modalities of the Policy are currently under discussion with OGRA and will be finalised shortly.

The Members in the 63rd Annual General Meeting held on September 27, 2023, elected the following Directors for a term of three years commencing from October 8, 2023:

1. Mr. Tariq Kirmani (Chairman)
2. Mr. Aftab Husain
3. Mr. Mohammad Abdul Aleem
4. Mr. Mohsin Ali Mangi
5. Mr. Mohammad Zubair
6. Mrs. Rushna Fawad
7. Syed Jehangir Ali Shah
8. Syed Muhammad Taha
9. Ms. Tara Uzra Dawood
10. Mr. Zafar ul Islam Usmani

The Company continues to maintain the highest standards of Health, Safety, Environment and Quality. Focus remained on efficient and safe operations including safety of employees, customers and contractors.

The Board of Directors places on record its appreciation for the cooperation extended by all the stakeholders, especially the continued support of the Government in various forms including the Brownfield Refining Policy, which promises to be a game changer for the refining industry. The Board of Directors also extends their gratitude to the retiring directors.

On behalf of the Board of Directors

Tariq Kirmani	Zahid Mir
Chairman	Managing Director & CEO
Karachi: October 18, 2023

First Quarter Report September 30, 2023 06

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT SEPTEMBER 30, 2023

ASSETS	Note
Non-current assets

September		June
30, 2023		30, 2023
Unaudited		Audited

(Rupees in thousand)

Property, plant and equipment	7
Right-of-use asset
Intangibles
Investment accounted for using the equity method
Long-term deposits and loans
Deferred tax asset
Employee benefit prepayments
Current assets
Inventories
Trade receivables	9
Trade deposits, loans, advances and short-term prepayments
Other receivables	10
Investments	11
Cash and bank balances
EQUITY AND LIABILITIES
EQUITY
Share capital
Accumulated loss
Special reserve
Revaluation surplus on property, plant and equipment
Other reserves
LIABILITIES
Non-current liabilities
Long-term borrowings
Long-term lease liability
Deferred tax liabilities
Employee benefit obligations
Current liabilities
Trade and other payables	12
Short-term borrowings	13
Current portion of long-term lease liability
Taxation - provision less payments
Unclaimed dividend
CONTINGENCIES AND COMMITMENTS	14

28,751,766

111,369

6,393

45,508

26,903

-

18,914

28,960,853

37,813,062

28,435,371

687,168

12,740,665

10,318,047

5,611,039

95,605,352

124,566,205

6,300,000

(13,770,560)

16,979,049

20,325,928

1,947

29,836,364

3,000,000

125,896

1,170,576

636,518

4,932,990

63,781,848

24,751,858

7,154

1,236,139

19,852

89,796,851

94,729,841

124,566,205

28,449,521

115,345

6,736

45,854

28,222

161,484

19,105

28,826,267

35,460,884

19,912,335

174,300

9,427,538

-

11,670,607

76,645,664

105,471,931

6,300,000

(18,249,656)

16,979,049

20,325,928

1,947

25,357,268

2,000,000

133,054

-

636,518

2,769,572

46,432,882

29,834,030

8,723

1,049,604

19,852

77,345,091

80,114,663

105,471,931

The annexed notes 1 to 22 form an integral part of this condensed interim financial information.

Zahid Mir	Mohammad Abdul Aleem	Imran Ahmad Mirza
Managing Director & CEO	Director	Chief Financial Officer

07 Doubling Capacity