Bosicor posts Rs7.9bn loss in July-Dec 2008

[LahoreEstate]

Bosicor posts Rs7.9bn loss in July-Dec 2008



Friday, February 27, 2009
By our correspondent

KARACHI: Bosicor refinery on Thursday announced a massive Rs7.9 billion loss for first half of the current financial year, reflecting the impact of fuel inventory losses and fast depreciation of rupee.

The July-Dec 2008 results depict a sorry picture compared to the same period of 2007 when the refinery had posted a profit of Rs143 million. Most of this fiscal year’s loss is accumulated in the Oct-Dec quarter that saw over Rs5bn being wiped off from the profit and loss account.

First six months of fiscal 2008-09 has been bitter for crude oil refineries, which were not allowed forward booking of dollars when the currency appreciated against rupee and oil prices suddenly plunged to an unimaginable low. “This result was obvious; there is nothing we could do about it,” Bosicor CEO Wasi Khan told The News.

“But the situation has started to improve now and coming months will bring better prospects for the refineries.” It is high time for the government to realize that oil refineries are businesses of strategic importance that need some cover from non-refining issues, he added. “Depreciation of rupee and increase in bank charges because of the country’s credit downgrading are beyond our control,” he said, adding: “The government should allow us to pass on these costs like elsewhere in the world.”

http://www.thenews.com.pk/daily_detail.asp?id=164706