PSO registers 120% growth in quarterly profits

PSO registers 120% growth in quarterly profits

KARACHI: Pakistan State Oil (PSO) on Thursday announced a massive jump in its quarterly net profit by over 120 per cent for the period ended September 30, 2021.

According to consolidated results, the profit of the company surged to Rs11.53 billion for the quarter ended September 30, 2021, as compared with Rs5.22 billion in the same quarter of the last year.

PSO announced Rs24.93 as earning per share for the quarter ended September 30, 2021 as compared with Rs11.07 in the same quarter of the last year.

The company in its board of management meeting held on October 28, 2021 approved the results and recommended no dividend for the period.

The company posted a gross profit of Rs 22.1 billion with gross margins set at 4.80 per cent in the first quarter of 2021/2022 compared to gross profit of Rs 11.5 billion (4.09 per cent gross margins) in the prior year.

Analysts view noteworthy changes in ex-refinery prices that resulted in inventory gains of around Rs 7 billion in 1QFY22 compared to inventory gains of Rs 1.5 billion in same period last year.

Other operating income decreased by 87 per cent QoQ to Rs 1,786 million in 1QFY22. We believe, absence of Late Payment Surcharge (LPS) resulted in decline in other income.

Meanwhile, finance costs nosedived by 92 per cent QoQ and 27 per cent YoY to Rs 626mn which is owing to lower reliance on short term borrowings and lower interest rates, we view.

The company recorded effective taxation at 32.6 per cent in 1QFY22 compared to 33.0 per cent in 1QFY21.

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