PIBT saw a host of economic challenges in FY22-23

PIBT saw a host of economic challenges in FY22-23
16 November 2023

Pakistan International Bulk Terminal Ltd (PIBTL) said in its annual report that during FY22-23, the company’s business was affected by the volumes handled, which lowered from 8.243Mt last year to 4.842Mt for the year ending 30 June 2023. It attributes the fall to the country's macroeconomic challenges, such as the high level of inflation, increased interest rates, devaluation of the Pakistani rupee against the US dollar, reduced economic activity and import restrictions.

As a terminal operator, the company’s operations are largely dependent on the demand for imported coal by cement, power plants, textile, chemical and other allied industries, and therefore, an economic downturn in these sectors has considerably reduced coal imports, especially in the period from December 2022 until May 2023. Furthermore, the increased trading of imported coal through Afghanistan has also adversely affected the Company’s volumes, particularly when the coal commodity prices in the global market were indicating a higher trend.

Despite the lower volumes handled during the year ended 30 June 3023, the operations of the company have generated positive contribution margins with cash generated from operations amounting to PKR1.26bn (US$4.17m) compared to US$1.94bn in 2022 and a gross profit of PKR1.59bn compared to PKR2.82bn in 2022. However, owing to the devaluation of the rupee, high interest rates and high inflation levels, the company was not able to realise the above margins and posted a net loss before tax of PKR3.12bn after accounting for exchange loss on US dollar-denominated foreign loans of PKR2.31bn and finance cost of PKR2.01bn. Provision for current tax is based on minimum tax, and deferred tax has improved mainly because of unabsorbed tax depreciation, resulting in net tax income of PKR972m and loss after tax of PKR2.15bn.  

PIBT has been set up as the country’s first terminal for handling coal, clinker and cement on a build, operate and transfer (BOT) basis at Port Qasim Authority.

Published under Cement News