Pakistan State Oil Company Limited (PSO) reported a profit after tax (PAT) of Rs. 10.3 billion for the fiscal year 2022-23 (9MFY23), down 84 percent year on year (YoY) from Rs. 64.8 billion in 9MFY22.
According to Arif Habib Limited (AHL), PSO’s earnings in 3QFY23 were Rs. 13.6 billion (EPS: Rs. 29.07) versus Rs. 32.6 billion (EPS: Rs. 69.40) in 3QFY22 due to reduced inventory gains during the quarter.
On a sequential basis, the company became profitable again due to a revision of OMC margins on MS and HSD sales and an improvement in ex-refinery margins (resulting in inventory gains in 3QFY23 versus inventory losses in 2QFY23).
PSO Sales
The company’s net sales were Rs. 2,517 billion in 9MFY23, up 62 percent year on year due to higher average selling prices of petroleum products.
Volumetric sales of MS, HSD, and FO, on the other hand, fell by 15%, 19%, and 45%, respectively, year on year.
Similarly, the topline in 3QFY23 increased by 43 percent YoY for the same reason. Meanwhile, overall volumes fell by 28% year over year.
The company reported a gross profit of Rs. 58.2 billion in 9MFY23, with a gross margin of 2.31 percent compared to 5.98 percent in SPLY due to inventory losses during the period.
Due to smaller inventory gains throughout the quarter, the gross margin closed at 5.75 percent in 3QFY23 (down 198 basis points year on year).
Other income decreased by 48 percent year on year in 9MFY23, falling to Rs. 11.5 billion from Rs. 22.3 billion in 9MFY22.
Meanwhile, due to the absence of considerable penal income from the power sector booked last year, other income fell by 65 percent YoY in 3QFY23, reaching Rs. 1.9 billion.
Because of increasing interest rates, borrowing costs increased 9.4x year on year to Rs. 25.1 billion in 9MFY23.
Similarly, finance costs increased by 10x year on year in 3QFY23 due to the aforementioned cause and an increase in short-term borrowings.
In 3QFY23, the company recorded effective taxation of 49 percent, up from 30 percent in 3QFY22. PSO reported earnings per share (EPS) of Rs. 21.91 for the 9MFY23 and Rs. 29.07 for the 3QFY23.
The company’s scrip at the time of reporting was Rs. 115.77, up 0.48 percent or Rs. 0.55 with a turnover of 589,081 shares on Thursday.
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