KARACHI: The board of directors of Hascol Petroleum Limited (Hascol) has approved a lube oil blending and grease plant worth Rs1.8 billion with expected commissioning in two years.

In a notice sent to Pakistan Stock Exchange (PSX), the company said land measuring approximately six acres has also been acquired at Port Qasim for the blending plant in collaboration with FUCHS-Germany.

The company said that once the plant is completed, it will further boost the sale of lubricant business.

According to BMA Research, the company reported Rs904 million earnings in its 9MCY16 result (eps:Rs7.5) – up 20 per cent year-on-year.

The growth in recurring earnings can be attributed to increase in volumetric sales of petrol and high-speed diesel.

However, on a sequential basis, earnings declined 29pc quarter-on-quarter to Rs292m (eps:Rs2.4) in 3QCY16 compared to Rs410m (eps:Rs3.4) in the preceding quarter.

A decline of 17pc quarter-on-quarter in gross profit remained the prime reason for fall in sequential earnings.

Published in Dawn, October 29th, 2016