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www.byco.com.pk

Byco Petroleum Pakistan Limited

9th Floor, The Harbour Front, Dolmen City, HC-3, Block-4, Marine Drive, Clifton, Karachi-75600, Pakistan

Tel: (+92 21) 111 222 081 Fax: (+92 21) 111 888 081

Imagined. Realized.

HALF-YEAR ENDING | 31 DECEMBER 2014

Byco Petroleum Pakistan Limited

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Contents

Company Information 02

Directors’ Review 03

Auditors’ Report to the Members on 04

Review of Interim Financial Information

Unconsolidated Condensed Interim Balance Sheet 05

Unconsolidated Condensed Interim Profit & Loss Account 06

Unconsolidated Condensed Interim Statement of Other 07

Comprehensive Income

Unconsolidated Condensed Interim Cash Flow Statement 08

Unconsolidated Condensed Interim Statement of 09

Changes In Equity

Notes to the Unconsolidated Condensed Interim 10

Financial Information

CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENT

Consolidated Condensed Interim Balance Sheet 20

Consolidated Condensed Interim Profit & Loss Account 21

Consolidated Condensed Interim Statement of Other 22

Comprehensive Income

Consolidated Condensed Interim Cash Flow Statement 23Consolidated Condensed Interim Statement of Changes 24In Equity

Notes to the Consolidated Condensed Interim 25Financial Information

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Board of Directors

Hamid Imtiaz Hanfi

Chairman

Muhammad Raza Hasnani

Vice Chairman

Muhammad Mujtaba Jafarey

Chief Executive Officer

Ovais Mansoor Naqvi

Director

Philip Harris

Director

Diana Brush

Director

Richard Legrand

Director

Javed Akbar

Director

Company Secretary

Shahana Ahmed Ali

Audit Committee

Philip Harris


Diana Brush

Strategy &RiskManagement Committee


Hamid Imtiaz Hanfi

Diana Brush

Services & StakeholdersCommittee Muhammad Raza Hasnani

Hamid Imtiaz Hanfi

Diana Brush

Chief Financial Officer

Muhammad Imran Sheikh

Legal Counsel

Shahana Ahmed Ali

Auditors

Ernst & Young Ford Rhodes

Sidat Hyder

Chartered Accountants

Bankers

Allied Bank Limited

Askari Bank Limited

Bank Alfalah Limited

Bank Islami Pakistan Limited

Barclays Bank Plc, Pakistan

Faysal Bank Limited

Habib Bank Limited

Habib Metropolitan Bank

Limited

JS Bank Limited

KASB Bank Limited

MCB Bank Limited

National Bank of Pakistan

NIB Bank Limited

Silk Bank Limited

Standard Chartered Bank(Pakistan) Limited

Soneri Bank Limited

Summit Bank Limited

Sindh Bank Limited

The Bank of Khyber

The Bank of Punjab

United Bank Limited

Shares Registrar

FAMCO Associates (Pvt)

Limited

8-F, Next to Hotel

Faran,Nursery, Block – 6,

P.E.C.H.S.,

Shahrah-e-Faisal, Karachi

Tel: (92 21) 3438 0101

3438 0102

Fax: (92 21) 3438 0106

Registered Office

9th Floor, The Harbour Front,

Dolmen City, HC-3,

Block4, Marine Drive,

Karachi-75600, Clifton,

Pakistan

Tel: (92 21) 111 222 081Fax: (92 21) 111 888 081

Website

www.byco.com.pk

Company Information

HALF-YEAR ENDING, 31 DECEMBER 2014 | 02

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In the name of Allah the Most Merciful andthe Most Benevolent.

The Directors of your Company are pleasedto present a brief review of the financialresults and operations of your Company forthe second quarter and half year ended 31st December, 2014.

The current half year witnessed a significantdecline in crude and product pricescompared to the corresponding quarterwhere there was generally an increasingtrend in prices. During the current sixmonths period, crude oil and product priceswitnessed a decrease of approximately 46%compared to an increase of about 11%during same period last year. This decliningprice trend continued post December 2014and the prices further dropped by 22% inJanuary 2015. As a result of this decliningprice, the industry suffered significant

inventory losses, which your company wassubstantially able to shield itself from bytaking proactive measures.

In current period, Pak Rupee depreciated byalmost 2% against the US$ whereas incorresponding period a significant decline ofalmost 9% was witnessed.

Despite the above challenges, yourCompany was able to increase its salesvolume by 22% from last year. During the

period, the refinery achieved through put of3.3million barrels compared to 2.8millionbarrels in corresponding period, a growth of18%. However, this increase in volume waspartly offset by the decline in prices. The netsales for the period under review wererecorded at Rs. 44.84 billion depicting anincrease of 9.5% from same period last yearand the Company earned agross profit ofRs. 569 million in the current period.

To achieve the above sales growth, theCompany further augmented its supply chainfunction and focused on selling more motorgasoline and diesel through its own retailstations and furnace oil directly to theIndependent Power Producers, includingfurnace oil to Pakistan State Oil CompanyLimited for onward supplies to Hub PowerCompany Limited. There is a significant

increase in selling and distribution expensesmainly on account of additional transportationcost for delivery of the products to ourcustomers. However, this additional transportcost has been invoiced and is recoverablethrough IFEM for motor gasoline and dieselsales through our retail sites and through ourCustomers for furnace oil.The administrativeexpenses have been strictly controlled andremained well within the budget.

The Company did incur a net loss after tax ofRs. 1.6billion, attributable entirely to thefinancial charges most of which representsmarkup incurred on long term loan which isnot currently due or payable.These chargesare payable after the settlement of theprincipal amount and hence, predominantlyfinancial charges have not affected the cashflows of the Company.

The Single Buoy Mooring (SBM) project of

our subsidiary company, Byco TerminalsPakistan Limited (BTPL), operatedsuccessfully throughout the period andcontinued to provide support foreconomical crude oil imports for theRefinery as well as assistance for import offinished petroleum product in the shape offurnace oil. This most recent development isexpected to lead to increase in revenues ofthe company.

The Board wishes to express appreciation

and place on record its gratitude for theco-operation extended to your Companyby Government of Pakistan and strategicpartners including financial institutions,vendors, suppliers, customers andshareholders of your Company.

We would also like to thank our dedicatedemployees for their commitment towardssustainable operations during these tryingtimes.

For and on behalf of the Board of Directors

Chief Executive OfficerKarachiFebruary 23, 2015


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Auditors’ Report to the Members onReview of Interim Financial Information

Introduction

We have reviewed the accompanying condensed interim balance sheet of Byco PetroleumPakistan Limited (the Company) as at 31 December 2014, related condensed interim profitand loss account, condensed interim statement of comprehensive income, condensedinterim statement of cash flows and condensed interim statement of changes in equity andnotes to the accounts (here-in-after referred to as “interim financial information”) for thesix-month period then ended. Management is responsible for the preparation and fairpresentation of this interim financial information in accordance with approved accountingstandards as applicable in Pakistan for interim financial reporting. Our responsibility is toexpress a conclusion on this interim financial information based on our review.

Scope of ReviewWe conducted our review in accordance with International Standard on Review Engagements2410, "Review of Interim Financial Information Performed by the Independent Auditor of theEntity." A review of interim financial information consists of making inquiries, primarily ofpersons responsible for financial and accounting matters, and applying analytical and otherreview procedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing and consequently does not enable us toobtain assurance that we would become aware of all significant matters that might beidentified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that theaccompanying interim financial information is not prepared, in all material respects, inaccordance with approved accounting standards as applicable in Pakistan for interim financialreporting.

Emphasis of Matter

We draw attention to note 2 to the unconsolidated condensed interim financial statementswhich indicates that the Company has incurred net loss after taxation of Rs. 1,662.680 millionduring the six months period ended 31 December 2014, and as of that date, its accumulatedlosses amounted to Rs. 25,471.019 million. These conditions, along with other matters as setforth in note 2, indicate existence of material uncertainty which may cast significant doubtabout the Company's ability to continue as going concern. However, unconsolidated

condensed interim financial statements have been prepared on going concern basis based onthe mitigating factors, as more fully explained in note 2 to the unconsolidated condensedinterim financial statements. Our conclusion is not qualified in respect of this matter.

Other Matters

The condensed interim financial information of the Company for the six months ended 31December 2013 and the annual financial statements for the year ended 30 June 2014 werereviewed and audited by another firm of Chartered Accountants, whose review report dated30 June 2014 and audit report dated 16 December 2014 expressed an unmodified conclusionand unmodified opinion on those statements respectively.

Chartered AccountantsReview Engagement PartnerRiaz A. Rehman ChamdiaDate: 23 February 2015Place: Karachi


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