By FASEEH MANGI and DANIEL TEN KATE
Byco Petroleum Pakistan, which runs a 35,000 bpd refinery,
expects to post its first annual profit in six years as steps
to cut costs take effect and sales climb.
The company forecasts sales will rise to 92 billion rupees
($872 million) in the year ending June, Amir Abbassciy, CEO
at Bycos parent, said in an interview in Karachi. Byco
plans to start a second refinery
this month to process
120,000 bpd of oil, which will make the group Pakistans
biggest refiner, followed by Pak Arab Refinery
, he said.
Byco is seeking to tap rising demand in South Asias
second-biggest economy, where dwindling natural gas supply is
seeing power producers and vehicle owners shift to petroleum
products. Pakistans annual consumption of petroleum
products is above 21 million tons, of which about 9 million
tons comes through imports.
Pakistans petrol and diesel imports will come
down after the refinery starts, Vahaj Ahmed, an analyst
at Topline Securities, said by phone in Karachi.
Pakistan will save approximately $800 million annually
An offshore loading buoy installed in January last year with
a pipeline to Byco Petroleums refinery
enabled it to receive
crude oil from large tankers, save on transport costs and
raise capacity utilization, Abbassciy said.
When we used to run on crude oil transported from the
port through trucks, we could not run more than 20,000
barrels a day because we couldnt get more, he
said. We can now run at 30,000-35,000 barrels a