Pakistan Refinery's Remarkable Production Achievement in September

Pakistan Refinery Limited (PRL), a subsidiary of Pakistan State Oil Company Limited (PSO), proudly announced a momentous accomplishment in its petroleum product production for the month of September. This remarkable achievement was disclosed through a notice submitted by PRL to the Pakistan Stock Exchange (PSX) on Wednesday.

The statement declared, "Pakistan Refinery Limited has attained historic production levels in September 2023, marking an exceptional milestone." This landmark, achieved through a combination of successful strategic adjustments and enhanced operational efficiency, not only boosted production but also significantly bolstered profitability.

PRL reached an unprecedented average feed rate of 5,340 tons, marking an extraordinary surge in middle distillate production to over 77,000 tons, with diesel accounting for an astonishing 73,423 tons, reaching an all-time high in the refinery's history. What's more, diesel sales surpassed 82,000 tons, setting a new record for the highest-ever monthly sales of the product.

In a strategic move to optimize revenue and product availability, PRL decided to convert Naphtha into Motor Spirit (MS), resulting in an astounding production of over 26,000 tons of MS 92, yet another record-breaking feat.

It's worth noting that in July, PRL initiated the Refinery Expansion and Upgrade Project (REUP) to modernize and enhance its refining capabilities. This ambitious project entails expanding PRL's crude processing capacity from the current 50,000 barrels per day (bpd) to an impressive 100,000 bpd. Additionally, deep conversion capabilities were installed, enabling the conversion of the entire fuel oil production into valuable products like petrol and diesel, while adhering to the stringent EURO V standard for environmentally friendly fuels.

Despite these extraordinary production milestones, PRL's latest financial results tell a different story. The company experienced a significant YoY decline of over 85% in profitability, with earnings standing at Rs1.82 billion in FY23, compared to the profit of Rs12.57 billion in the same period last year. This decline was attributed to the depletion of the country's foreign exchange reserves, depreciation of the PKR, a substantial increase in the interest rate, and the highest-ever inflation.