Total sales of PSO surges by 62pc in first quarter of 2017

KARACHI: Total sales of Pakistan State Oil (PSO) were up 62pc to Rs. 218 billion driven by higher oil prices, casting positive impact on PSX trading, said a report issued here Monday evening.

Growth in white oil (Petrol & diesel) was said to had also contributed to higher sales and gross profits for the company during the first quarter of the current year.

International oil prices was said to had surged by 77pc in the period under review which was partially reflected in local ex-refinery prices.

As a result of higher oil prices, gross profits also increased to Rs.9.2bn vs. loss of Rs 610 million in the same period last year. Higher gross profits could be attributed to higher margins on furnace oil (margins linked with prices) and absence of any inventory losses.

Meanwhile PSO also cut down its operating cost by 5pc to Rs.2.9 billion contributing to the bottom-line. Similarly, other income was also up by 6pc to Rs.1.7 billion, likely due to higher penal income (late payment surcharge) from power sector.