Pakistan Refinery to borrow PKR 3.15 billion from PSO for upgradation

Pakistan Refinery Limited (PRL) will borrow PKR 3.15 billion from Pakistan State Oil Company (PSO) to finance expansion and upgrade project.

“Board of Directors of PRL has approved the acquisition of a loan facility amounting to PKR 3.15 billion, from PSO to finance the company's Front-End Engineering Design (FEED) of the Refinery Expansion & Upgrade Project (REUP),” a stock filing noted.

“This loan has an option of conversion into equity, which will be subject to all requisite corporate and regulatory approvals that maybe required then.”

This REUP will double the refinery’s crude processing capacity from 50,000 barrels per day to 100,000 barrels per day.

In this regard, FEED work has been completed in September 2024 as per schedule. The refinery has now initiated the Engineering, Procurement, Construction and Finance (EPCF) tendering process to be followed by financial close, in which regard PRL continues to be engaged with different potential strategic investors.

The first quarter of the current financial year witnessed depressed global refining margins with a sharp decline in the prices of crude oil and petroleum products.

During the current quarter, the countrywide demand of refined petroleum products mainly diesel and furnace oil showed volumetric decline as compared to the corresponding quarter.

Consequently, PRL suffered a loss after taxation of PKR 2.35 billion as compared to profit after taxation of PKR 4.48 billion in the comparative quarter last year.