An analysis of the performance of Pasargad Oil in the first 10 months of 1404 indicates that the reported profit of this company is in stark contrast to operational realities. While the financial statements suggest profitability, the significant decrease in production and sales has seriously clouded the outlook for this company's activities.
Severe Decline in Sales and Production
Domestic sales have decreased from 468,000 tons to 277,000 tons, which could be due to a recession in construction projects or loss of market share. In any case, both scenarios could significantly increase risks in the coming years.
The production of penetration asphalt, which is considered one of the strategic products of this company, has also decreased from 200,000 tons to 65,000 tons. This decline may indicate weaknesses in the product portfolio, issues in feedstock supply, or a drop in the export market.
Rising Costs and Financial Pressure
Alongside these developments, administrative costs have risen by 86% and financial costs by 91%. This increase in costs has hindered the strengthening of profit margins and has exerted more pressure on the company's financial situation. While profitability may seem favorable at first glance, operational realities paint a different picture.
