Hascol Petroleum faced a massive loss in terms of earnings in the year 2019. The company earned a profit of Rs 15 billion in the same period last year faced a loss of Rs. 13.87 billion this year. The major reason for this decline was the shortage of working capital to obtain product which also lead to the decrease in company’s volume from 646,000 Metric Tons to 210,000.
The company reported net sales of Rs. 111.97 billion which was down by 40% as compared to Rs. 184.30 billion in the previous year. Lower gross profit due to decrease in sales volume, inventory losses ,significant increase in finance cost and relatively higher average borrowing levels all together contributed in this extraordinary loss.
Source: Pro Pakistani