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Hascol takes satisfactory results

FIRST QUARTER 2016 (MARCH 31, 2016)
HALF YEAR 2016 (JUNE 30, 2016)

Our sales volumes has increased by more than 45% over the same period of last year and our profit after tax has also increased by almost 19%. The credit for the outstanding performance goes to the management team who have executed the business plan efficiently and exceeded the targets set both in volumes and profitability.

Company is in the process of building new storage facilities and by the end of this year our storage facility at Mehmoodkot will be completed and this will tremendously boost our sales in Southern Punjab. New storage facilities are also in the construction phase in Sahiwal and recently we have laid the foundation stone of storage facility near Islamabad, where we are grateful to FWO for giving us the appropriate land. Our Keamari terminal is also now fully operational and we are now able to receive 30,000 Tons of Motor Gasoline cargo in our storage facility. Storage facilities in Machike, Shikarpur and Daulatpur have also been increased.

The company has set up a new joint venture company with Vitol in the name of Hascol Terminals Limited, which will build 200,000Tons of storage facility at Port Qasim. Land has already been acquired and formal approval from OGRA is awaited for starting our construction activity. If all goes as planned, we hope to commission this by the end of 2017. This will give tremendous boost to our supply chain capabilities and give us huge competitive edge over other oil marketing companies.

NINE MONTHS 2016 (SEPTEMBER 30, 2016)

Our sales volumes has increased by more than 49% over the same period of last year and our profit before tax has increased by 90% and profit after tax has increased by almost 20%. This excellent performance could not have happened without the efforts of management team who have executed the business plan and exceed the targets both in volumes and profitability.

Company is in the process of building new storage facilities and by the end of this year our storage facility at Mehmood Kot will be completed and this will tremendously boost our sales in Southern Punjab. New storage facilities are also in the construction phase in Sahiwal and recently we have laid the foundation stone of storage facility near Islamabad, where we are grateful to FWO for giving us the appropriate land. Our Keamari terminal is also now fully operational and we are now able to receive 30,000 M. Tons of Motor Gasoline cargo in our storage facility. Storage facilities in Machike, Shikarpur and Daulatpur have also been increased.

The Company has set up a new joint venture company with Vitol in the name of Hascol Terminals Limited, which will build 200,000 M. Tons of storage facility at Port Qasim. Land has already been acquired and formal approval from OGRA is awaited for starting our construction activity. If all goes as planned, we hope to commission this by the end of 2017. This will give tremendous boost to our supply chain capabilities and give us huge competitive edge over other oil marketing companies.

ANNUAL 2016 (DECEMBER 31, 2016)

Our sales volumes increased by almost 46% and our profit before tax was in excess of rupees 2 billion. As such, we have exceeded the challenging targets, which the Board had set for the management. We ended the year, as the third largest Oil Marketing Company in the country in terms of volumes.

The credit for this outstanding performance goes to senior management and all the employees who have executed the Business Plan in a diligent and efficient manner. As a result of our performance the share price of the company has been steadily increasing and continues to reflect the superb performance of the company. In 2016, we commissioned ZY terminal at Keamari, which has enabled us to import larger volumes of Motor Gasoline and this has resulted a huge growth in our Motor Gasoline sales.

Additionally, we completed storage facility at Mehmood Kot and recently the pipeline has also been connected with the Papco Pipeline. We are now in a position to receive diesel directly via pipeline from Karachi. This will boost our sales in Southern Punjab.

The company has set up a new joint venture company with Vitol in the name of Hascol Terminals Limited, which will build 200,000 Tons storage facility at Port Qasim. Construction work is proceeding at a fast pace and we hope to commission a major part of the facility by the end of 2017.

Hascol has also acquired a land for Lube Oil Blending and Grease Plant at Port Qasim. The design work has been completed and recently the Ground Breaking Ceremony was held to formally inaugurate the construction phase of the project. We hope to have the plant fully operational in 2018.

Your company is also entering the LPG business and has applied to OGRA for LPG Marketing License. We will be setting up a storage facility at Port Qasim to import LPG and sell bulk LPG to third parties and through cylinders.

Hascol/Vitol have also started joint venture company for marketing of LNG in Pakistan. In the joint venture company Vitol will be a 70% shareholder and Hascol will be a 30% shareholder. Vitol is in the process of acquiring an equity stake in one of the LNG terminals being set up.

The company will continue with its aggressive plan to develop the Retail Outlets and new depots to open new sales envelop. By the end of 2017, our retail network will cross 500 Retails Outlets and two new storage facilities at Sahiwal and Amangarh will be operational. Necessary land has also been acquired at Kotla Jam to develop a storage facility to meet the growing demand, resulting from CPEC.

Vitol has exercised the option to take 10% more equity in the company. Once, all the formalities will be completed, Vitol will be largest shareholder with 25% equity. Vitol decision to increase its equity reflects their confidence in the management of the company and its future prospects.

Moreover, with Vitol as our shareholder, our imports of petroleum products to meet our growing requirements have been streamlined and we are able to maintain sufficient stocks at all times due to swift execution of our import needs by Vitol at competitive prices.

FIRST QUARTER 2017 (MARCH 31, 2017)

During the first quarter our sales volume grow by 29% over the same period last year and we ended the first quarter as the second largest oil marketing company in Pakistan, in terms of volume. Moreover, our profit after tax has also increased from 202.20 million to 376.7 million.This is a great achievement for which I want to thank the senior management and all the employees for executing the business plan successfully.

In the first quarter, we were able to commission our Mehmoodkot installation and this has given us a huge marketing advantage in Southern Punjab. Our storage facility at Sahiwal will INSHALLAH be completed in the second quarter. Simultaneously, work is proceeding at a fast pace at Thalian and Kotlajam. With the completion of these facilities our sales volume will get a big boost.

The work is also proceeding at great speed at Port Qasim storage facility and the Lube Oil Blending Plant. Additionally, we have acquired land adjacent to the Byco Refinery to build a storage facility next to the refinery. This will enable us to improve our operational efficiency in meeting the requirements of our customers.

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