PSO declares profit of Rs 4.3bn in first quarter

KARACHI: Pakistan State Oil (PSO) on Monday announced its earnings of Rs 4.3 billion (EPS Rs 16.1) in the first quarter of 2016-17 compared to the earnings of Rs 3.2 billion (EPS Rs 11.97) in the same period last year. The announcement was made in a financial statement released by the company at Pakistan Stock Exchange (PSE). The analyst said that the results were in line with the market expectations as the company showed strong growth in its sales volume. PSO’s net sales were up by 4 per cent year-onyear to Rs 194 billion in July-Sept 2016-17 led by strong volumetric growth in its oil sales. Total oil sales of the company were increased by 18 per cent YoY to 3.7 million tonnes in first quarter this year while major growth was witnessed in furnace oil sales that went up by 32 per cent year on year to 2.0 million tonnes. Motor gasoline (MOGAS) sales were also up by 4 per cent to 656,000 tonnes. This strong growth in sales volume negated any negative impact arising due to lower oil prices and supported sales of the company. Oil prices were down by 14 per cent in this quarter. Consequently, gross profits of the company were up by 30 per cent year on year to Rs 9.7 billion in first quarter 2016-17. An analyst at Toplines brokerage house said alongside improved sales, lower inventory losses could also be a key driving factor. Finance cost of the company was also declined by 32 per cent to Rs 1.3 billion, driving bottom-line of the company. Other income of PSO was declined by 30 per cent to Rs 1.9 billion due to lower late payment surcharge from the IPPs, the analyst said. On quarter on quarter (QoQ) basis, earnings were down by 23 per cent due to fall in other income which is down by 67 per cent QoQ to Rs 1.9 billion. Sales of the company went up by 2 per cent and gross profits were increased by 4 per cent QoQ.