PSO Reports 2.3% Lower Profit of Rs. 15.10 Billion for FY 2018-19

Pakistan State Oil (PSO), the largest oil marketing company in Pakistan, has announced its financial results for the fiscal year 2018-19.

Oil marketing companies have seen a significant change in their revenue mix in the last couple of years. PSO reported a consolidated profit of Rs. 15.10 billion, down by just 2.30% as compared with a profit of Rs. 15.46 billion earned in the same period last year.

The company's net sales increased by 11.45% to Rs. 1.18 trillion as compared with Rs. 1.06 trillion in the same period last year. The growth in sales was only due to the depreciation of rupee against the US dollar instead of volumetric sales. The cost of products was stated at Rs. 1.15 trillion, showing an increase of 12.55% as compared with Rs. 1.02 trillion in the corresponding period of the last year.

The influx of smuggled products and contractions in the country's economic indicators impacted the overall industry. However, net sales of the company were up but the overall volumetric sales recorded a significant drop during the year.

Despite the challenging economic scenario, reduction in market size and increasing competition in the industry, PSO continued to lead Pakistan's petroleum downstream market with a share of 42.4% in Total Liquid Fuels (White Oil 40.2%, Black Oil 52.0%).

Other income of the company increased by 126% to Rs. 16.92 billion as compared with Rs. 7.50 billion in the same period last year. The other income doubled due to the high-interest rate environment in the country as well as sales of petroleum products at higher margins.

Overall expenses of the company surged to Rs. 18 billion, up by 17% as compared with Rs. 15.26 billion recorded in the same period last year. The finance cost of the company surged to Rs. 9.95 billion from Rs. 5.15 billion, showing an increase of 94.32%.

This is in spite of high outstanding receivables (inclusive of LPS) from the Power Sector, PIA and SNGPL as of June 30, 2019, which stood at Rs. 307 billion.

The earnings per share of the company were reported at Rs. 36.55 from Rs. 39.52.

The board of directors has declared a final cash dividend of Rs. 5 per share (50%) and one bonus share in proportion of every five shares, which is in addition to the interim cash dividend of Rs. 5 per share.

PSO's shares at the bourse were closed at Rs. 155.67, down by Rs. 0.26 or 0.17%, with a turnover of 6.96 million shares on Wednesday.

Source: Pro Pakistani