Pakistans NRL Posts Lower Lube Segment Profit

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Pakistans National Refinery Ltd. reported its half-year net profit for its lube segment – which includes API Group I base oils and waxes – plunged 52 percent year-on-year, hurt by weak domestic sales.

The lube segment posted profit after tax of 344 million Pakistani rupees (U.S. $2.2 million) for the six-month period that ended Dec. 31, down from Rs 720 million a year ago, according to the crude oil and petroleum products suppliers financial statement. NRL is part of Attock Oil Co.

NRLs lube segment includes base oils, wax, slack wax, rubber process oil, bitumen or asphalt and various other petroleum products, according to its website. The companys base oil products include high-viscosity index base oils (65, 100, 150, 400 and 500 neutrals and bright stock), mid-viscosity base oils (650 neutral and bright stock) and spindle oil.

Net sales for the lube segment decreased 9 percent to Rs 18.3 billion, mainly hurt by lower domestic sales, the Karachi, Pakistan-based company said. Local sales were down 10.4 percent at Rs 17.5 billion, but exports rose 26 percent to nearly Rs 867 million.

According to its website, the company operates a refinery that has a base oil plant, and a second base oil plant that receives feedstock from the companys fuel refinery. All three facilities are in the same company complex in Karangi.

NRL commissioned a crude oil refinery with its first base oil plant in 1966, with an annual base oil production capacity of 533,400 barrels (about 1,460 barrels per day). A second base oil plant, commissioned in 1985, had an annual base oil production capacity of 700,000 barrels, and then a revamp in June 2008 increased its capacity to 805,000 barrels (2,200 b/d).

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