ISLAMABAD: Pakistan Refinery Limited (PRL) has announced that it will shut down its refinery plant for approximately six days, starting from February 15, 2025.
The maintenance shutdown is expected to last until February 20, 2025, as the company undertakes essential upkeep work. The announcement was made in a notice issued to the Pakistan Stock Exchange (PSX) on Friday.
The refinery explained that the maintenance work was crucial for ensuring the long-term sustainability and operational efficiency of the plant. The shutdown is scheduled during a period of relatively low demand for petroleum products, which the company views as an ideal time to minimize the impact on its supply chain and operations.
“This maintenance shutdown is planned at a time when the demand for petroleum products is relatively low, allowing us to carry out necessary work while ensuring minimal disruption,” said the company in its notice. The shutdown is also expected to help prepare the refinery for the upcoming harvesting season, which typically sees an increase in energy demands.
Pakistan Refinery’s decision to undergo a maintenance period comes at a time when the company is facing several challenges in its financial performance. The company reported a 7.3% year-on-year decline in net sales, which totaled Rs168.88 billion for the first half of fiscal year 2025 (1HFY25). The cost of sales saw a modest decrease of 1.1%, but the company’s gross profit took a significant hit, declining by 84.3% year-on-year to Rs2.12 billion. As a result, the company’s gross margin dropped sharply from 7.41% to just 1.26%.
Despite the financial setbacks, PRL is focused on optimizing its operations, particularly by refining its crude intake. The company is prioritizing crude types that align with its refinery configuration, aiming to maximize yields and improve operational efficiency.
In addition to regular maintenance, PRL is undertaking major upgrades through its Refinery Expansion and Upgradation Project (REUP). This project is designed to enhance the refinery’s capabilities, including the production of EURO-V compliant fuels such as High-Speed Diesel (HSD) and Motor Spirit (MS). Another key objective of the upgrade is the installation of advanced deep conversion refinery technology, which will reduce the production of furnace oil. The expansion project also aims to double the refinery’s capacity from 50,000 barrels per day (bpd) to 100,000 bpd, significantly increasing its output and enabling it to meet growing domestic and regional demands.
While the maintenance shutdown may lead to short-term disruptions, the company remains optimistic that these efforts will strengthen the refinery's ability to compete in the market and support Pakistan’s energy needs in the long run. The ongoing upgrades are part of a broader strategy to improve the overall performance and sustainability of Pakistan's refining industry.
