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PSO incurs hefty losses on the back of lower FO margins

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April 29, 2020 (MLN): Pakistan State Oil (PSO) announced its financial results for the nine months ended March 31, 2020, today, which show that the company has incurred losses of Rs. 4.4 billion (LPS: 2.19) as compared to the profits of Rs. 5.9 billion (EPS: 12.62) recorded in the same period of last years.

While the prices for MS and HSD rose during the period, the fall in the value of FO, as well as overall volumetric sales, caused the sales revenue to grow by a very low margin of 10.1%.

Similarly, the gross profit of the company fell on the back of high inventory losses, and lower volumetric sales, as suggested by IGI Securities.

The decision by the Economic Coordination Committee to allow adjustment of exchange rate movement over the 60-day period resulted in lesser exchange losses for the period, which in turn led to an 82% decline in non-core expenses.

On the other hand, the non-core income depicted a 1.35x growth on the back of higher penal interested income, the report by IGI Securities stated.

Furthermore, the finance cost surged by 79% due to higher interest rates on short-term borrowings.

Financial Results for the nine months ended March 30, 2020 ('000 Rupees)

 

Mar-20

Mar-19

% Change

Net Sales

901,955,027

819,198,909

10.10%

Cost of products sold

(886,797,485)

(795,314,964)

11.50%

Gross Profit

15,157,542

23,883,945

-36.54%

Other income

8,447,046

3,592,155

135.15%

Distribution & marketing expenses

(8,295,676)

(6,606,972)

25.56%

Administrative cost

(2,868,273)

(2,277,325)

25.95%

Other expenses

(213,903)

(1,205,163)

-82.25%

Profit from operations

12,226,736

17,386,640

-29.68%

Finance costs

(12,139,512)

(6,775,565)

79.17%

Share of (loss)/profit of associates – net of tax

459,326

82,188

458.87%

Profit before taxation

546,550

10,693,263

-94.89%

Taxation

(4,953,847)

(4,767,005)

3.92%

Profit after taxation

(4,407,297)

5,926,258

 

Earnings per share – basic and diluted (Rupees)

(2.19)

12.62

 

 

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Posted on: 2020-04-29T14:45:00+05:00

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