The meeting of the Board of Directors of Pakistan Refinery Limited was held on April 23, 2007 to approve and present to the members the un-audited condensed interim financial statements for the nine months ended March 31, 2007.

Your Company made a healthy net profit after tax of Rs.406.57 million in the third quarter i.e. January-March 2007 and was able to recover some of the losses incurred in the preceding months resulting in a net loss after taxation of Rs. 406.69 million. This happened due to the strong performance of gasoline and naphtha in the months of February and March 2007 on global basis. Singapore complex margin went up as high as USD 8/bbl.

Petroleum products off take in the country has increased to 12.02 million MT verses 10.06 million MT in the corresponding period last year. Within product categories, Motor Spirit sale volume remained depressed posting a decline of 6.2% from previous period due to shift in consumer preference towards cheaper fuel, CNG and LPG. On the other hand, Furnace Oil sale volume grew by 64.39% as a result of demand posted by higher oil based thermal power generation and frequent interruption in gas supplies from Baluchistan.

During the period July 2006 till March 2007, your refinery operated at a capacity of 5,728 MT/Day after taking effect of 28 days' Turn-around which was carried out in the month of August 2006. However crude oil processed during January-March 2007 was 6,174 MT/Day, which is 2% higher as compared to the corresponding period last year.

Your board has now finalized the investment plan and is pleased to inform you that your Company will be making a total investment of USD 320 million over a period of 48 months, this includes an investment of USD 188 million earlier approved by the Board.

The Company has received “Health and Environment National Excellence Award 2006” on account of environmental reporting. At the end of the current period, your Company has achieved 12.40 million man-hours without Lost Time Injury and thereby setting a new HSE standard for the competitors.

The Board of Directors would like to express their gratitude to our valued customers and all employees of the Company for the continuous support.

On behalf of the Board of Directors.