PSO’s earnings plunge 68% in 3QFY23

Despite higher sales, the profit-after-tax (PAT) of Pakistan State Oil Company Limited (PSO), the country’s largest oil marketing company, plunged 68%, clocking in at Rs12.54 billion for the third quarter of fiscal year 2023 (January-March 2023), compared with PAT of Rs39.28 billion reported in the same period last year.

Resultantly, earnings per share (EPS) were recorded at Rs27.57 in 3QFY23 as compared to EPS of Rs79.43 in SPLY. The board of directors met on April 27 to review the company’s financial and operational performance in the first nine months ended March 31, 2023.

The company’s board recommended a ‘nil’ dividend.

Unconsolidated: PSO reports loss of Rs4.56bn in 2QFY23

According to the notice to the Pakistan Stock Exchange (PSX) on Thursday, PSO’s net sales during the quarter ended March 31, 2023, rose to Rs827.1 billion compared to Rs588.5 billion in SPLY, which equates to a nearly 40% increase.

However, despite higher sales, the company’s gross profit declined by over 5% clocking in at Rs48.24 billion in 3QFY23, compared to Rs50.81 billion in SPLY. The decrease is attributed to an increase in cost of products sold, which jumped from Rs537.7 billion in 3QFY222 to Rs778.85 billion in 3QFY23, registering a 45% jump.

Meanwhile, the OMC’s other income also dropped to Rs2.51 billion in 3QFY23, compared to Rs11.72 billion in SPLY, a decrease of nearly 79%.

On the other hand, PSO’s cost of finance increased to Rs14.56 billion in 3QFY23, as compared to Rs1.59 billion in same period last year, a jump of over 800%. The higher finance cost during the period could be attributed to the rise in interest rate during the period.

Meanwhile, the operating expenses of PSO increased to Rs8.2 billion in the third quarter of the current fiscal year, as compared to Rs7.6 billion in SPLY, an increase of 8%.