ANL 12.80 Decreased By ▼ -0.20 (-1.54%)
ASC 15.02 Increased By ▲ 0.20 (1.35%)
ASL 15.52 Decreased By ▼ -0.23 (-1.46%)
AVN 104.40 Decreased By ▼ -3.65 (-3.38%)
BOP 8.40 Decreased By ▼ -0.03 (-0.36%)
CNERGY 6.13 Decreased By ▼ -0.13 (-2.08%)
FFL 8.90 Decreased By ▼ -0.20 (-2.2%)
FNEL 8.38 Decreased By ▼ -0.27 (-3.12%)
GGGL 12.90 Decreased By ▼ -0.32 (-2.42%)
GGL 19.50 Decreased By ▼ -0.89 (-4.36%)
GTECH 9.07 Decreased By ▼ -0.33 (-3.51%)
HUMNL 6.71 Decreased By ▼ -0.04 (-0.59%)
KEL 3.07 Decreased By ▼ -0.07 (-2.23%)
KOSM 4.07 Decreased By ▼ -0.08 (-1.93%)
MLCF 33.80 Decreased By ▼ -0.50 (-1.46%)
PACE 3.98 Decreased By ▼ -0.15 (-3.63%)
PIBTL 7.17 Decreased By ▼ -0.06 (-0.83%)
PRL 14.08 Decreased By ▼ -0.36 (-2.49%)
PTC 8.55 Decreased By ▼ -0.11 (-1.27%)
SILK 1.27 Decreased By ▼ -0.05 (-3.79%)
SNGP 33.76 Decreased By ▼ -0.40 (-1.17%)
TELE 17.05 Decreased By ▼ -0.69 (-3.89%)
TPL 11.80 Decreased By ▼ -1.17 (-9.02%)
TPLP 26.65 Decreased By ▼ -1.87 (-6.56%)
TREET 38.40 Decreased By ▼ -1.25 (-3.15%)
TRG 77.20 Decreased By ▼ -5.65 (-6.82%)
UNITY 27.49 Decreased By ▼ -0.36 (-1.29%)
WAVES 15.43 Increased By ▲ 0.33 (2.19%)
WTL 2.13 Decreased By ▼ -0.08 (-3.62%)
YOUW 7.34 Decreased By ▼ -0.43 (-5.53%)
BR100 4,610 Increased By 11.6 (0.25%)
BR30 17,620 Increased By 286.2 (1.65%)
KSE100 44,955 Increased By 67.3 (0.15%)
KSE30 17,738 Increased By 42 (0.24%)

coronavirus
Coronavirus
VERY HIGH
Source: covid.gov.pk
Pakistan Deaths
29,137
1524hr
Pakistan Cases
1,386,348
5,19624hr
Sindh
531,008
Punjab
467,698
Balochistan
34,032
Islamabad
120,813
KPK
186,537

The OMC sector has been witnessing record volumetric sales of petroleum products. During the first quarter of FY22, oil sales were above 5.8 million tons growing by 24 percent year-on-year and led by double-digit growth in furnace oil (38% YoY), HSD (36% YoY), and MS (14% YoY). Pakistan State Oil (PSX: PSO) was the clear winner among all OMCs with volumetric growth of 34 percent year-on-year - surpassing the industry growth and regaining market share.

Higher volumetric growth was a major factor for PSO’s topline growth in 1QFY22. The growth in volumes for PSO was led by furnace oil that rose by 66 percent year on year, followed by HSD and MS growing by 26 and 21 percent year-on-year respectively. PSO’s topline was up by a massive 64 percent year-on-year and besides the volumetric incline, the jump in the OMC’s sales was also due to the surge in petroleum prices.

After reporting record earnings for FY21, PSO reported all-time high profits for a quarter in 1QFY22 where apart from the topline growth, inventory gains and jump in gross profits were also the factors driving earnings growth. The OMC is expected to have recorded hefty inventory gains during the quarter due to the jump in retail product prices amid rising global crude oil prices.

Despite the rise in other expenses and distribution and marketing expenses, PSO’s operating profits more than doubled with support from other income as well as the topline and gross profit growth. Further support to the bottomline came from lower finance costs on account of lower short term borrowings.

PSO’s earnings surged by more than 2.3 times in 1QFY22 where much of the volumetric growth came from reviving consumption and demand of petroleum products, price increase as well as the company’s increased retail footprint and upgradation in fuel quality. And the same will continue to be the growth drivers for the coming quarters. However, where rising oil prices are benefiting the OMC in terms of inventory gains, a long term increase in oil prices also have the tendency to impact the liquidity position of the company via circular debt accumulation and high working capital requirement.

Comments

Comments are closed.

2 Comment(s)
Sort By
Sajid Ali Oct 29, 2021 04:33pm
Be pakistani and buy pakistani as PSO is pride of our Nation so please buy PSO products
thumb_up Recommended (0)
Mashkoor Oct 30, 2021 07:29pm
PSO always served and stood for the nation at times even booking loss but ensuring that energy needs if the people of Pakistan is met.
thumb_up Recommended (0)