⏸️ PRL: HOLD Signal (6/10) – Presentation on Corporate Briefing Session

📌 Key Takeaways

• 📉 PRL reported a loss after tax of Rs. 4.66 billion for FY25, compared to a profit of Rs. 4.06 billion in FY24.
• 💰 Gross profit decreased significantly by Rs. 13 billion due to depressed refining margins.
• ⬆️ Revenue increased slightly to Rs. 310.35 billion from Rs. 305.54 billion year-over-year.
• ⛽ Highest ever annual production of HSD: 796,261 MT (6.16 million barrels).
• ⛽ Highest ever average daily production of HSD: 2,243 MT (17,356 barrels).
• 📅 Highest ever monthly sales during November-2024: 84,370 MT (0.65 million barrels) for HSD.
• ⛽ Highest ever annual production of MS: 295,553 MT (2.64 million barrels).
• ⛽ Highest ever average daily production of MS: 833 MT (7,447 barrels).
• ✅ Successfully completed Front End Engineering Design (FEED) of REUP in Q2 2024-25.
• 🚧 Evaluating EPC-F bids from prospective contractors for the Refinery Expansion and Upgrade Project (REUP).
• ⚠️ Loss / earnings per share decreased to (Rs. 7.40) from Rs. 6.45.
• ⬇️ Net Equity decreased from Rs. 29.6 billion to Rs. 26.6 billion, a 10.1% decrease.
• ⬆️ Total crude intake increased to 1,706,356 MT from 1,481,625 MT.
• ✅ During Q1 2025 (ended September 30, 2025) the company generated profit of Rs. 1.016 billion compared to loss of Rs. 2.35 billion in the same quarter last year.

🎯 Investment Thesis

Based on the current financial performance, I recommend a HOLD rating. While the company has made progress on operational efficiency and refinery upgrades, the near-term outlook is uncertain due to continued pressure on refining margins. A price target cannot be given due to high volatitlity.