Business Recorder
Burshane LPG (Pakistan) Limited (PSX: BPL) was incorporated in Pakistan as a limited liability company. The company is engaged in the storing, marketing and trading of Liquefied Petroleum Gas (LPG) throughout Pakistan and trading of low pressure regulators (LPR). Pattern of Shareholding As of June 30, 2025, BPL has a total of 22.489 million shares outstanding which are held by 1175 shareholders. BPL’s directors have the majority stake of 54.82 percent stake in the company followed by local general public holding 29.98 percent of its shares. National Bank of Pakistan accounts for 8.23 percent of the outstanding shares of BPL while 5.94 percent of its shares are held by CDC. The remaining shares are held by other categories of shareholders. Historical Performance (2019-24) Over the period under consideration, BPL’s topline rose only in 2019, 2021 and 2022. The company posted net profit only in 2019, 2022 and 2025 Its gross margin rode a downhill journey until 2021, recovered for the next two years followed by a dip in 2025. On the contrary, its operating and net margins stayed in the positive territory only in 2019, 2022 and 2025. The detailed performance review of the period under consideration is given below. In 2019, BPL’s net sales grew by 11 percent year-on-year to clock in at Rs. 3249.87 million. This was on the back of increased prices whereas the quantity sold by the company slumped by 9.7 percent year-on-year to clock in at 38,358 MT on account of lesser supply from local refineries and also the expiry of sales contract with NRL. During the year, the company also imported 12.8 percent lower LPG which clocked in at 12,447 MT. During 4QFY19, BPL’s margins turned negative as there was a skimpy demand from local consumers while the local refineries increased their supply significantly during the period and sold at less than OGRA approved prices. This resulted in 7.38 percent thinner gross profit registered by the company in 2019 with GP margin sliding down from 7.95 percent in 2018 to 6.63 percent in 2019. During the year, BPL was able to cut down its administrative expense by 1.95 percent as it undertook cost control measures in the areas of vehicle maintenance as well as travelling & conveyance. Distribution expense escalated by 7 percent year-on-year in 2019. BPL was also able to register 20 percent rise in its other income during 2019 as its liability for cylinder and regulatory deposits was written back during the year. Operating profit slipped by 16.39 percent year-on-year in 2019 with OP margin shrinking from 2.86 percent in 2018 to 2.15 percent in 2019. BPL was also able to cut down its finance cost by 83.68 percent in 2019 as the company restructured its demand finance facility with NBP under which the balance payment of Rs.165 million had to be paid over next seven years. As a consequence of loan restructuring and reduced finance cost for the year, BPL was able to post 31.95 percent year-on-year rise in its net profit in 2019 which clocked in at Rs.25.857 million. EPS grew from Rs.0.87 in 2018 to Rs.1.15 in 2019. NP margin also improved from 0.67 percent in 2018 to 0.796 percent in 2019. In 2020, BPL registered 20.54 percent downtick in its net sales which clocked in at Rs.2582.45 million. This was on account of 18 percent year-on-year decline in the company’s sales volume which clocked in at 31,465 MT as there was huge influx of imported LPG in the market. Another reason was the withdrawal of participants from the distribution chain on account of government documentation drive. COVID-19 related disruptions are also to be blamed for the reduced sales volume reported by BPL in 2020. Due to slowdown in sales, the company imported 5652 MT of LPG, down 54.59 percent year-on-year. Cost of sales also slid by 19.31 percent year-on-year in 2020. This pushed the company’s gross profit down by 37.86 percent in 2020 with GP margin slipping to 5.18 percent. Administrative expense and distribution expense surged by 4.67 percent and 2.65 percent respectively in 2020 mainly on account of depreciation, advertising and publicity, transportation as well as freight & octroi charges incurred during the year. As a consequence, BPL posted operating loss of Rs.26.01 million in 2020. Finance cost mounted by a massive 810.69 percent in 2020. Gearing ratio surged from 47.41 percent in 2019 to 53.57 percent in 2020. This resulted in net loss of Rs.109.829 million in 2020 with loss per share of Rs.4.88. In 2021, the company witnessed a negligible 0.34 percent year-on-year growth in its topline which clocked in at Rs. 2591.30 million. This was despite the fact that its sales volume grew by 4.6 percent year-on-year to clock in at 32,925 MT. This was due to price reduction on account of ample availability of imported LPG in the local market amid sluggish demand due to COVID-19 related protocols. Lower prices resulted in 74.97 percent shrinkage in BPL gross profit in 2021 with GP margin diminishing to 1.29 percent. Administrative expense spiked by 11.82 percent year-on-year in 2021 as legal charges went up during the year on account of complaints lodged by Investigation & Intelligence - Inland Revenue (I&I IR) department and also because of general inflation. Conversely, drop in hospitality charges as low LPG filling was taking place at third party plants culminated into 5.88 percent plunge in distribution cost in 2021. BPL registered operating loss of Rs.137.14 million in 2021, up 427.30 percent year-on-year. Due to monetary easing, finance cost dwindled by 39.42 percent in 2021. Despite this, BPL’s net loss magnified by 9 percent year-on-year in 2021 to clock in at Rs.119.754 million with loss per share of Rs.5.33. BPL’s sales volume which showed slight uptick in the previous year, dropped by 4.2 percent year-on-year in 2022 to clock in at 31,548 MT. However, there was a staggering 73.45 percent year-on-year rise in the company’s topline in 2022 which was recorded at Rs.4494.63 million. This was the consequence of increase in prices during the year. Gross profit multiplied by over 396 percent in 2022 with GP margin marching up to 3.697 percent. Administrative expense plummeted by 7 percent in 2022 due to reduction in litigation charges related to the complaint lodged by I&I IR. Distribution expense posted 3.81 percent growth in 2022 due to higher freight charges. Gain on restructuring of loan during the year drove up BPL’s other income by 127.89 percent in 2022. BPL posted operating profit of Rs.40.31 million in 2022 with OP margin of 0.897 percent. Loan restructuring resulted in 49.39 percent downtick in the company’s finance cost for the year. This resulted in net profit of Rs.26.839 million in 2022 with EPS of Rs.1.19 and NP margin of 0.60 percent. BPL’s topline shrank by 21.38 percent year-on-year to clock in at Rs. 3533.61 million in 2023. This was on account of 1.9 percent lower sales volume which stood at 30,960 MT in 2023. Higher availability of imported LPG took its toll on the sales volume of BPL during the period. However, higher international crude oil prices improved the company’s GP margin to 4.28 percent in 2023, despite 9 percent year-on-year diminution in gross profit. Administrative expense stayed constant despite inflationary pressure due to lower legal charges incurred during the year. Distribution expense also slumped by 4.50 percent year-on-year in 2023 due to lower hospitality charges due to low LPG filling at third party plants. Gain on restructuring of loan which BPL booked last year created a high-base effect, resulting in 54.69 percent plunge in other income in 2023. BPL posted operating loss of Rs.7.34 million in 2023. Finance cost magnified by 315.92 percent in 2023. As a consequence, BPL posted net loss of Rs.66.151 million in 2023 with loss per share of Rs.2.94. In 2024, BPL recorded 32.72 percent year-on-year decline in its net sales which clocked in at Rs.2377.50 million. This was the result of 61.7 percent lower sales volume which clocked in at 11,867 MT in 2024. This was on account of reduced local LPG quota as well as low demand of LPG due to high inflation and affordability factors. Cost of sales dropped by 33.79 percent in 2024. While gross profit in absolute terms eroded by 8.71 percent in 2024, GP margin improved to 5.80 percent. Administrative expense inched up by 1.40 percent in 2024 mainly on account of donation paid during the year. Distribution expense slid by 2.55 percent in 2024 due to lower salaries of sales force as well as low hospitality charges owing to thin demand. Other income mounted by 115.95 percent in 2024 mainly on account of gain on disposal of property, plant and equipment, liability for cylinder deposits and regulator deposits written back as well as higher hospitality and storage income and recovery against cylinder replacement. Other expense also surged by 219.79 percent in 2024 due to allowance booked for credit loss. This translated into operating loss of Rs. 0.43 million in 2024. Finance cost grew by 22.91 percent in 2024. During the year, the company restructured its loan with NBP whereby its outstanding long-term loan of Rs.154 million was restructured to running finance facility. BPL’s gearing ratio stood at 89.29 percent in 2024 versus gearing ratio of 65.64 percent recorded in the previous year. The company recorded net loss of Rs.73.677 million in 2024, up 11.38 percent year-on-year. This culminated into loss per share of Rs.3.28 in 2024. In 2025, BPL’s net sales eroded by 30.24 percent to clock in at Rs.1658.58 million. This came on the back of 31.20 percent decline in the sales volume which was recorded at 8,166 MT in 2025. During the year, the company faced working capital limitations, irregular availability of LPG from local suppliers and rigorous competition from unregulated operators functioning across the country. This took its toll on the pricing and distribution dynamics of the industry and put pressure on the margins. Previously, the formal LPG companies were assigned a stable quota, however, lesser production by refineries and fields disturbed this system, leading to reduced quota. This put the legitimate players at a competitive disadvantage. Demand remained high during the year as natural gas couldn’t suffice the rising population and growth in the housing sector. Cost of sales dropped by 29.65 percent in 2025. This resulted in 39.75 percent thinner gross profit in 2025 with GP margin dropping to 5 percent. Lower sales volume and curtailed operations resulted in 21.13 percent dip in administrative expense and 12.43 percent decline in distribution expense in 2025. BPL also streamlined its workforce from 80 employees in 2024 to 73 employees in 2025. Capacity utilization stood at 22.037 percent in 2025, resulting in the storage and filling of 8264 MT of LPG. This was against the capacity utilization of 31.19 percent recorded in the previous year. Other income strengthened by 154 percent in 2025 mainly on account of liability of cylinder deposits and regulator deposits (pertaining to inactive distributors) written back during the year. Other expense fell by 55.38 percent in 2025 due to lesser allowance for ECL booked during the year. BPL posted operating profit of Rs.91.01 million in 2025 with OP margin of 5.49 percent. This was against the operating loss of Rs.0.43 million recorded in 2024. Finance cost tumbled by 18.48 percent in 2025 due to monetary easing. Increase in cash & bank balances and higher equity on the back of revaluation surplus recorded on the property resulted in a downtick in gearing ratio which clocked in at 78.91 percent in 2025 versus gearing ratio of 89.29 percent recorded in the previous year. BPL posted net profit of Rs.29.522 million in 2025 with EPS of Rs.1.31 and NP margin of 1.78 percent. This was against the net loss of Rs.73.677 million and loss per share of Rs.3.28 posted in the previous year. Recent Performance (9MFY26) During the nine month period of the ongoing fiscal year, BPL recorded a tremendous 71.78 percent year-on-year growth in its net sales which clocked in at Rs.2014.395 million. This came on the back of 78 percent increase in the company’s sales volume which was recorded at 10,238 MT. Improved sales volume was due to superior cash flows on account of financing provided by a sister concern, increased availability of local product and higher purchase of imported product. Greater accessibility of both local and imported products along with efficient inventory management resulted in 284.54 percent higher gross profit recorded in 9MFY26 with GP margin clocking in at 8.23 percent versus GP margin of 3.67 percent recorded in 9MFY25. Lesser litigation charges and constant workforce rationalization squeezed administrative expense by 6.26 percent in 9MFY26. Distribution expense also ticked down by 4 percent during the period under review despite robust sales volume. This was due to lower salaries of sales force. Other income strengthened by 40.23 percent in 9MFY26 on account of income from third-party LPG storage and write off of cylinder deposits. Other expense plunged by 37 percent in 9MFY26 likely due to lesser loss recorded on the sale of fixed assets and lesser allowance for ECL booked during the period. BPL posted operating profit of Rs.134.60 million in 9MFY26 with OP margin of 6.68 percent versus operating loss of Rs.13.86 million recorded in 9MFY25. Finance cost dipped by 33.90 percent in 9MFY26 due to lower discount rate and repayment of entire outstanding short-term loan. BPL registered net profit of Rs.100.726 million in 9MFY26 versus net loss of Rs.60.429 million recorded in 9MFY25. EPS was recorded at Rs.4.48 in 9MFY26 versus loss per share of Rs.2.69 posted in 9MFY25. NP margin clocked in at 5 percent in 9MFY26. Future Outlook With the lack of indigenous pipeline gas, LPG has become an alternative solution for household, commercial and transport sectors. Price instability and supply impediments are the areas of concern for the company and call for initiatives by the government to incentivize local storage and filling of LPG.
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