PSO profit jumps 83pc, skips dividend

KARACHI: Pakistan State Oil (PSO) announced results for the first quarter July-Sept of 2013-14 posting profit after tax at Rs7.8 billion, translating into earning per share at Rs31.57.

It represented growth of 83 per cent over PAT at Rs4.3bn and eps at Rs17.28 earned in the corresponding period of the previous year. The results beat analysts’ consensus forecast.

The extra ordinary growth in earnings was attributable to a giant leap in ‘other income’ by 764 per cent to Rs10.1bn, from Rs1.2bn. Operating cost rose by 123 per cent to Rs7.2bn, from Rs3.2bn.

Net sales recorded growth of 11 per cent to Rs307bn, from Rs276bn in the same period last fiscal year.

In a statement, PSO said that the company had recorded the highest ever quarterly after tax earnings in the period under review.

It stated that the company maintained its market leadership during the period under review with overall market share of 63.8 per cent. The PSO share in Black Oil and White Oil stood at 75.9pc and 52.5pc, respectively.

The company’s liquid fuel sales grew by 4.3pc. The sales volume of furnace oil and motor gasoline rose by 6.7 and 17.4pc, respectively, while sales volume of high speed diesel dropped by 6.4pc.

The oil marketing company observed that the positive impact of the improved sales on bottom line was partially offset by the sharp devaluation of the rupee against the dollar by approximately 6.7pc against erosion of just 0.5pc in the same time last year.

Consequently the company had to bear exchange loss of Rs3.7bn, against Rs0.4bn in the same period last year. “However, interest received from the private power producers and interest accrued on PIBs had significant positive impact on the bottom line despite the fact that finance cost increased by 10 per cent,” PSO stated.

The company said that due to liquidity issues faced by the company, caused by outstanding receivables, mainly from the power sector consumers, the board had decided to defer the dividends at this stage.